When Used as the Means for Measuring Success or Failure

question 129

Short Answer

When used as the means for measuring success or failure, goals are operating as
management tools.
budget standards.
bonus criteria.
performance targets.
motivators.

---

Definitions:

Non-Monetary Items

Items on the balance sheet not easily converted to cash, often valued at historical cost, such as property, plant, and equipment.

Functional Currency

The currency of the primary economic environment in which the entity operates, typically used in the preparation of financial statements.

Closing Values

The final price at which a security is traded on a given trading day, used for financial reporting and analysis.

Contributed Capital

Funds that shareholders invest in a company by purchasing shares directly from the company.