Question

Which of the following statements is true of performance reports?

A) The performance report shows actual performance as compared to the budget.
B) The performance report depicts the performance of a firm's competitors.
C) The performance report compares only the budgeted performance over the years.
D) The performance report contains no actual results due to confidentiality.

Answer 1

The correct option is A). Performance reports show actual performance as compared to the budget.

Step-by-step explanation:

The correct statement about performance reports is option A) The performance report shows actual performance as compared to the budget. Performance reports provide an analysis of the actual performance of a company in relation to its budgeted performance. These reports help management track and evaluate the financial performance of the organization and make necessary adjustments to achieve its goals. By comparing actual results to the budget, management can identify areas of improvement or potential issues.