Phil, a Corporate Controller, Was Preparing a Comprehensive Presentation of His

question 27

Multiple Choice

Phil, a corporate controller, was preparing a comprehensive presentation of his firm's financial statements for the board of directors. He suspected some members of the board would experience information overload, so he wanted to focus on creating value-added information as a strategy for reducing it. Which of the following is the best example of value-added information in this context?

• A) An explanation of the company's inventory cost flow assumption (FIFO, LIFO).
• B) The difference between the direct and indirect methods of computing cash flow from operations.
• C) The percentage change in this year's net income compared to last year's.
• D) A list of steps in the accounting cycle.

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Definitions:

Personal Biases

The inclination or prejudice for or against one person or group, especially in a way considered to be unfair.

Line Managers

Individuals in an organization who directly manage other employees and operations while having responsibility for achieving business goals.

Work Sampling

A technique used in time and motion study to analyze the proportion of time spent on different activities, based on random samples of observations.

Situational Interviews

A interviewing technique that asks candidates to describe how they would handle specific work-related situations, assessing their problem-solving and decision-making skills.