Financial performance measurement is useful for all of the following except assessment of
A) accounting methods.
B) return by investors.
C) risk by creditors.
D) risk by investors.

Question

Quizplus · Accepted Answer

Financial performance measurement is meant to evaluate an organization's financial health and operational efficiency. It takes into account various financial metrics and business activities to determine how well it performs. One of the primary purposes of financial performance measurement is to provide investors and creditors with crucial data about the organization's financial position, profitability, liquidity, and cash flow. Additionally, it can help in identifying areas where improvements are required. However, it is not useful for the assessment of accounting methods since that requires a separate analysis of the organization's accounting policies and practices. Therefore, option A is the correct answer.

Financial Performance Measurement Is Useful for All of the Following