Accounting and Finance Each Have Significant Responsibilities Related to the Firm's

question 120

Multiple Choice

Accounting and finance each have significant responsibilities related to the firm's financial performance; however, the accountant's role is informational, while the financial analyst's role is critical and investigative. Therefore, we can say that:

• A)the accountant's job stops at the presentation of information.
• B)the analyst must rely on the accountant to assist in analyzing the financial statements because the accountant is more familiar with their content.
• C)the financial analyst assesses the information presented in the accountant's financial statements to seek out problems and their ramifications for the firm.
• D)financial analysts qualified to practice as CPAs may undertake both responsibilities and eliminate any overlap of similar tasks.

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Definitions:

Indifference Curves

Graphical representations in microeconomic theory that illustrate different combinations of two goods between which a consumer is indifferent in preference.

Optimal Consumption

The point at which an individual's utility from consuming goods and services is maximized, given their budget constraints.

Loaves

Units of bread that have been baked in a specific shape or size, often rectangular and intended for slicing.

Pounds

A unit of weight commonly used in the British imperial and United States customary systems, equal to 16 ounces.