For Managerial Purposes,i

question 110

Multiple Choice

For managerial purposes,i.e.,making decisions regarding the firm's operations,the standard financial statements as prepared by accountants under generally accepted accounting principles (GAAP) are often modified and used to create alternative data and metrics that provide a somewhat different picture of a firm's operations.Related to these modifications,which of the following statements is CORRECT?

• A)The standard statements make adjustments to reflect the effects of inflation on asset values, and these adjustments are normally carried into any adjustment that managers make to the standard statements.
• B)The standard statements focus on accounting income for the entire corporation, not cash flows, and the two can be quite different during any given accounting period. However, the firm's value is based on its future cash flows. After all, future cash flows tells us how much the firm can distribute to its investors.
• C)The standard statements provide useful information on the firm's individual operating units, but management needs more information on the firm's overall operations than the standard statements provide.
• D)The standard statements focus on cash flows, but managers should be less concerned with cash flows than with accounting income as defined by GAAP.
• E)The best feature of standard statements is that, if they are prepared under GAAP, the data are always consistent from firm to firm. Thus, under GAAP, there is no room for accountants to "adjust" the results to make earnings look better.

Understand the role of trust and mutual respect in developing long-term business relationships.

Recognize the importance of integrating social media and CRM systems in addressing post-sale service needs.

Comprehend the strategies for enhancing customer satisfaction through services such as warranties and speedy delivery.

Acknowledge the effect of service quality on customer expectation and salesperson success.

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Definitions:

Individualistic Cultures

Societies that emphasize personal achievements and rights over group goals and cohesion.

Collectivistic Cultures

Societies that prioritize the needs and goals of the group over the desires and ambitions of the individual.

Pronouns

Words used to substitute for nouns, often to avoid repetition and denote possession, gender, or openness.

Egalitarianism

A principle that emphasizes equality, advocating for equal rights and opportunities within a group or society.