Question Details

Which of the following is related to an effective capital allocation?



1.	Which of the following represents a form of communication through financial reporting but not through financial statements?
a.	Balance sheet.
b.	President's letter.
c.	Income statement.
d.	Notes to financial statements.

	2.	The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization- operations is called
a.	financial accounting.
b.	managerial accounting.
c.	tax accounting.
d.	auditing.

	3.	How does accounting help the capital allocation process attract investment capital?
a.	By providing timely, relevant information.
b.	By encouraging innovation.
c.	By promoting productivity.
d.	By providing timely, relevant information and by encouraging innovation.

	4.	Which of the following helps in determining whether a business thrives?
a.	Markets.
b.	Free enterprise.
c.	Competition.
d.	All of these answer choices are correct.

	5.	Which of the following is related to an effective capital allocation?
a.	Promoting productivity.
b.	Encouraging innovation.
c.	Providing an efficient market for buying and selling securities.
d.	All of these answer choices are correct.




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