Question

A firm’s management analyzes financial statement’s so that: a. they can get feedback on their investing, financing, and working capital decisions by identifying trends in the various accounts that are reported in the financial statements. b. similar to shareholders, they can focus on profitability, dividend, capital appreciation, and return on investment. c. they can get more stock options. d. a and b.

Answer 1

Answer:

d. a and b

Explanation:

A firm’s management analyzes financial statement’s so that:

Evaluating company's performance, by analyzing the financial statements in respect of various areas of financing, investing and operating activities, and then comparing the performance with past records and industries of same category.

Further the firm's management is responsible to take decision of dividend, and return to be paid to equity and various other stakeholders, thus both options a and b are correct.

Correct answer

d. a and b