Which of these is a reason why managers are usually reluctant to make projected financial statements available to groups outside the organisation?
A) Because release could damage their competitive position.
B) Because outsiders may not fully appreciate the assumptions behind the projected statements.
C) Because actual results may vary considerably from projected results.
D) All of the above are reasons.

Question

Quizplus · Accepted Answer

Managers may be reluctant to release projected financial statements to outsiders for a variety of reasons. One reason is that release could damage their competitive position by providing sensitive information to competitors. Another reason is that outsiders may not fully appreciate the assumptions behind the projected statements, leading to misunderstandings and false expectations. Finally, actual results may vary considerably from projected results, making it difficult for managers to justify their forecasting and potentially damaging their credibility.

Which of These Is a Reason Why Managers Are Usually