A Balanced Scorecard

question 9

Multiple Choice

A balanced scorecard

• A)integrates performance measures across four different perspectives.
• B)assists in communicating the corporate strategy throughout the organization.
• C)helps managers understand the interrelationships between various areas of an organization.
• D)illustrates cause-and-effect relationships.

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Definitions:

Use of Cash

Describes how a company spends its cash, encompassing operational expenses, investment activities, and financing activities.

Accounts Receivable

Owed sums to a corporation by its customers for commodities or services furnished or taken advantage of, with the payment still forthcoming.

Tax Shield

A reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as interest on loans.

Noncash Expenses

Expenses recorded on an income statement that do not involve actual cash flow, such as depreciation or amortization.