Accounting numbers are useful in that they
A)are easy to manipulate by management and help predict a company's future earnings and cash flows.
B)allow users to see management's predictions of future profits and help predict a company's future cash flows.
C)help investors and creditors influence and monitor management's business decisions and help predict a company's future earnings and cash flows.
D)help investors and creditors influence, manipulate, and monitor management's business decisions so that future profits are high.

Question

Quizplus · Accepted Answer

Accounting numbers help investors and creditors influence and monitor management's business decisions and assist in predicting a company's future earnings and cash flows. While accounting numbers may provide insight into management's predictions and performance, they are not necessarily easy to manipulate, and it is not ethical or legal for investors or creditors to manipulate or influence management's decisions.

Accounting Numbers Are Useful in That They