An Important Difference Between Financial Measures of Quality and Nonfinancial

question 6

Multiple Choice

An important difference between financial measures of quality and nonfinancial measures of quality is that ________.

• A) financial measures of quality tend to be useful indicators of future long-term performance, while nonfinancial measures have more of a short-term focus
• B) nonfinancial measures of quality tend to be useful indicators of future long-term performance, while financial measures of quality have more of a short-term focus
• C) nonfinancial measures are generally too subjective to have any long-term value, while financial measures are too objective for taxation purposes
• D) nonfinancial measures are generally too subjective to have any short-term value, while financial measures are too objective to have medium-term value