Which of the Following Is Not a Main Barrier to the Effective

question 90

Multiple Choice

Which of the following is not a main barrier to the effective use of nonfinancial performance measures by organizations?

• A)Skepticism that the measures are directly related to the bottom line
• B)Lack of management skill needed to implement the measures
• C)Lack of familiarity with the measures on the part of the board members
• D)Undeveloped tools for analyzing the measures

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Indirect Method

A reporting approach used in cash flow statements where net income is adjusted by changes in non-cash accounts to determine cash flow from operating activities.

Net Cash Flow

The difference between a company's cash inflows and outflows within a defined period.

Operating Activities

Part of cash flow that represents the revenues and expenses directly related to the core business operations.