The question 'Should assets be defined as total assets or net assets?' is considered to be part of which step in designing an accounting-based performance measure?
A)Choose performance measures that align with top management's financial goals.
B)Choose the time period of each performance measure.
C)Choose a definition for each performance measure.
D)Choose a measurement alternative for each performance measure.

Question

Quizplus · Accepted Answer

This question deals with choosing a definition for the performance measure, which is a key step in designing an accounting-based performance measure. The other options listed involve choosing the time period and measurement alternative, or aligning goals with top management, but they do not directly relate to the specific issue of how to define assets for the performance measure.

The Question 'Should Assets Be Defined as Total Assets or Net