In Which of the Following Situations Is It Prudent to Conduct

question 59

Multiple Choice

In which of the following situations is it prudent to conduct a feasibility study?

• A) When asked to appraise the performance of a non-performing employee
• B) When asked to create an inventory report for the previous quarter
• C) When asked to present the sales reports of previous years
• D) When asked to determine the cause of failure of a newly launched product
• E) When asked to determine if the company should replace its five-day, 40-hour work week with a different schedule

---

Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with net income or loss.

Statement of Cash Flows

A financial report that provides a summary of a company's cash inflows and outflows over a specified period.

Account Receivable

An Account Receivable is an asset account on the balance sheet that represents money owed to a company by customers for goods or services provided on credit.

Financial Statements

Written records that convey the business activities and financial performance of a company, including the balance sheet, income statement, and statement of cash flows.