Asked by Isabella Cardenas on May 10, 2024
Verified
Elsa owns a business and is reviewing her company's current financial statements.As a user of accounting information,Elsa is most interested in using this information to
A) evaluate credit risk.
B) approve new issues of stocks and bonds.
C) plan and control activities.
D) evaluate tax liabilities.
Financial Statements
Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.
Accounting Information
Financial data and reports that provide insights into the financial health of a business, aiding in decision-making and financial management.
Credit Risk
The possibility that a borrower may not repay a loan or meet contractual obligations, leading to financial loss for the lender.
- Understand the importance of financial statements in making informed decisions.
Verified Answer
CR
Carlos ramirezMay 13, 2024
Final Answer :
C
Explanation :
Elsa, as a business owner, would use her company's financial statements primarily to plan and control activities, ensuring that the business is operating efficiently and making adjustments as necessary for future success.
Learning Objectives
- Understand the importance of financial statements in making informed decisions.