For Control Purposes, Which of the Following Is NOT an Important

question 11

Multiple Choice

For control purposes, which of the following is NOT an important financial aspect of organisational performance?

• A) The ability to earn more in returns than the cost of the debt
• B) The ability to sell shares of the company's stock
• C) The ability to generate cash to pay bills
• D) The ability to earn revenues greater than costs
• E) The ability to use resources efficiently and operate at minimum cost

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Definitions:

Income Statements

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Accounts Credited

Accounts that have been increased in a double-entry bookkeeping system due to the recording of revenues, gains, liabilities, or owner's equity.

Accounts Debited

Refers to the entries made on the left side of an account, signifying an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Horizontal Analysis

A method of financial examination that looks at past financial data across multiple reporting periods to detect patterns and trends in growth.