question archive Which of the following is an example of a businessperson making a business decision by analyzing financial data: A
Which of the following is an example of a businessperson making a business decision by analyzing financial data: A
Subject:EconomicsPrice:2.87 Bought7
Which of the following is an example of a businessperson making a business decision by analyzing financial data:
A. William asks the staff accountant to prepare the company's profit-and-loss statement for next Tuesday's executive board meeting.
B. After reviewing sales forecasts and income statements, Angela determines that the company has enough money to hire a new employee.
C. Timothy obtains a copy of the business's credit rating report from a credit bureau.
D. So she can prepare the company's tax return, Kate obtains the necessary financial documents and forms.
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Answer:
B After reviewing sales forecasts and income statements, Angela determines that the company has enough money to hire a new employee.
A business analyzes financial data for many reasons. One reason is to make decisions that affect the welfare of the business. For example, if a businessperson decides that s/he can afford to hire a new employee after reviewing sales forecasts and income statements, the businessperson has made a decision based on his/her findings in the financial reports. Asking an accountant to prepare a profit-and-loss statement, obtaining a credit rating report, and obtaining documents to prepare a tax return are not actions that involve decision making.
