A Primary Purpose of a Balanced Scorecard Is to Give

question 13

Multiple Choice

A primary purpose of a balanced scorecard is to give

• A)managers a way to judge past performance.
• B)stockholders a way to judge current performance.
• C)managers a way to forecast future performance.
• D)stockholders a way to tie strategy to profitability.

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Definitions:

Statement Of Cash Flows

A financial report that details the inflows and outflows of cash within a company over a specific period, indicating its operational, investing, and financing activities.

Financing Activities

Transactions and events affecting the long-term liabilities and equity of a company, including issuing debt, repaying loans, and distributing dividends.

Net Cash

The amount of cash that is remaining after all cash inflows and outflows have been accounted for, over a specific period.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.