Which of the following is considered to be an advantage that nonfinancial information has over financial information?
A)Nonfinancial information is most helpful in analyzing a company's current period performance.
B)Nonfinancial information is more reliable than financial data.
C)Nonfinancial information reflects the company's current and potential competitive advantage,while financial information tends to focus only on a firm's current situation.
D)Nonfinancial data is more confidential than financial data.

Question

Quizplus · Accepted Answer

Nonfinancial information takes into account the broader, qualitative aspects of a company's performance such as its culture, brand, and innovation, which have a significant impact on its future growth and competitiveness. Financial information, on the other hand, tends to be backward-looking and focuses mainly on a firm's financial position, profitability, and cash flows. Therefore, nonfinancial information provides a more nuanced and holistic picture of a company's current and potential competitive advantage.

Which of the Following Is Considered to Be an Advantage