Question

Which of these describes management's need for reliable financial statements?

a. Assess the financial position of a company in litigation.
b. Review performance, make operational decisions, and report results to capital markets.
c. Evaluate loan decisions, considering interest rates, terms, and risk.
d. Buy or sell stock or bond

Answer 1

Management needs reliable financial statements to review performance, make operational decisions, and report results to capital markets.

Step-by-step explanation:

The correct answer is b. Review performance, make operational decisions, and report results to capital markets. Management needs reliable financial statements to review the performance of a company, make operational decisions, and report the results to the capital markets. Financial statements provide crucial information about a company's financial position, cash flow, and profitability. These statements help management understand how the company is performing and make informed decisions for the future.