Internally,firms Use Performance Metrics Provided by Accounting For

question 45

Multiple Choice

Internally,firms use performance metrics provided by accounting for:

• A)communicating with potential investors.
• B)applying for loans and subsidies.
• C)satisfying regulatory agencies.
• D)determination of compensation and for risk management.

Evaluate the effectiveness and timing of fiscal stimulus packages.

Understand the significance of balancing the budget over the business cycle.

Assess the implications of the crowding-out effect on economic activity.

Grasp the concept of inflationary and recessionary gaps and how fiscal policy can adjust them.

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Definitions:

Chief Financial Officer

The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company, overseeing financial planning, and reporting on financial performance.

Securities & Exchange Commission

A federal agency responsible for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges.

External Audit

An external audit is conducted by an independent firm or individual to examine an organization's financial records and operations to ensure the accuracy and integrity of its financial statements.