Management is a user of financial analysis.Which of the following comments does not represent a fair statement as to the management perspective?
A)Management is interested in the view of investors.
B)Management is interested in the view of creditors.
C)Management is interested in the financial structure of the entity.
D)Management is interested in the asset structure of the entity.
E)Management is always interested in maximum profitability.

Question

Quizplus · Accepted Answer

While management may prioritize profitability, it is not always the only objective. Other objectives such as sustainability, growth, and risk management may also be prioritized by management. Therefore, the statement "Management is always interested in maximum profitability" is not a fair statement as it may not always be true.

Management Is a User of Financial Analysis