The Essential Element of a Du Pont Chart Is That

question 30

Multiple Choice

The essential element of a Du Pont chart is that it:

• A) includes financial measures
• B) includes key performance indicators
• C) includes key performance drivers
• D) identifies linkages between A,B and C

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Definitions:

Accounts Payable

Money owed by a business to its suppliers or vendors for goods and services purchased on credit.

Operating Activities

Activities that relate to the principal revenue-producing activities of an entity and other activities that are not investing or financing activities.

Accounts Receivable

Debts owed by clients to a company for products or services that have been provided but remain unpaid.

Indirect Method

A way of calculating cash flows from operating activities in the statement of cash flows by adjusting net income for changes in balance sheet items.