Which of the Following Is Not an Example of a Decision

question 5

Multiple Choice

Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?

• A)Future profitability based on past profitability.
• B)Probability of success of a new product development.
• C)A forecast of dividends.
• D)Assessment of risk that a company may have more debt than it can repay if the economy enters a recession.

---

Definitions:

Informational Reports

Documents compiled to inform readers about a specific topic, presenting facts without requiring further action.

Data Without Analysis

Information collected for reference or analysis that has not yet been examined or interpreted.

Firsthand Experience

Direct personal observation or involvement in events, providing immediate or primary evidence.

Observation

The action or process of closely monitoring or noticing something or someone, often for study, research, or assessment.