Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 28

For the following questions, circle the best response.

Examples of how investors, creditors, and others commonly use reported earnings figures and the related information about the elements of financial statements include all of the following except

a. estimating the number of employees the firm will hire during the next year.

b. evaluating management’s past performance.

c. predicting future earnings.

d. assessing the risks of future cash flows.

e. all of the above are examples of how these data are used.

Step 1 of 2

The correct option is a.