Which Statement Is True

question 160

Multiple Choice

Which statement is true?

• A)Management uses financial information to analyze costs.
• B)Management uses financial information to plan internal operations.
• C)Management uses reports created for internal parties.
• D)All of the above are true.

---

Definitions:

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are unknown.

Behavioral Economists

Scholars examining how psychological, cognitive, emotional, cultural, and social influences affect the financial choices of individuals and organizations.

Gains

Increases in economic benefits, such as profits, revenue, or utility.

Losses

Negative financial results from business operations, where expenses exceed revenues.