Accounting reports are least helpful in answering which of the following questions?
A) How much cash was available at the end of the last year?
B) How well were the employees treated by management?
C) Did the company make a profit for the previous year?
D) Can the company pay its debts on time?

Question

Quizplus · Accepted Answer

Accounting reports primarily deal with financial information and are designed to provide information on financial performance, liquidity, and financial position of an organization. Employee treatment is not a financial transaction and cannot be quantified in accounting reports. Therefore, accounting reports are least helpful in answering how well employees were treated by management.

Accounting Reports Are Least Helpful in Answering Which of the Following