Managers' decisions regarding financing, investment, and working capital are reflected in the financial statements.

Question

Quizplus · Accepted Answer

Managers' decisions regarding financing, investment, and working capital have a direct impact on the financial statements. The financing decisions affect the balance sheet and the income statement, investment decisions affect the balance sheet and the statement of cash flows, and working capital decisions affect the balance sheet, income statement, and the statement of cash flows. Therefore, the financial statements provide a clear reflection of what decisions the managers have taken in these areas.

Managers' Decisions Regarding Financing, Investment, and Working Capital Are Reflected