A Company Needs Financial Objectives to

question 95

Multiple Choice

A company needs financial objectives to

• A)spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment.
• B)communicate management's targets for financial performance and achieve strategic objectives.
• C)indicate to employees whether the emphasis should be on earnings per share, return on investment, return on assets, or positive cash flow.
• D)convince shareholders that top management is acting in their interests.
• E)counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

Calculate the ending owner's equity of a business after closing revenues, expenses, and withdrawals.

Determine the impact of closing entries on the Income Summary account.

Understand the preparation of final statements from the worksheet post adjustments and closings.

Recognize the sequence of steps in the accounting cycle.

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Definitions:

Nineteenth Century

The period from 1801 to 1900, characterized by industrialization, colonial expansion, and cultural changes.

Prison

A facility in which individuals who have been convicted of crimes are confined as a form of punishment and rehabilitation.

Punishment

The infliction or imposition of a penalty as retribution for an offense or wrongdoing.

Émile Durkheim

A founding figure in sociology known for his work on social solidarity, religion, and the study of suicide.