Stella, a systems manager for a large technology company, would like to get an understanding of her company's financial position with respect to assets and liabilities at the end of the fiscal year.To which of the following should she refer?
A)Income statement
B)Activity ratio
C)TQM report
D)Balance sheet
E)Balance scorecard

Question

Quizplus · Accepted Answer

The balance sheet provides information on a company's assets and liabilities at a specific point in time, making it the best choice for Stella to refer to in order to understand her company's financial position. The income statement provides information on a company's revenues and expenses over a period of time and is not relevant to Stella's current need. Activity ratios provide information on a company's efficiency in managing its assets and liabilities, but do not give a full picture of the company's financial position. TQM (Total Quality Management) reports are not related to financial position. The balanced scorecard is a strategic management tool that measures a company's performance in multiple areas, including financial and non-financial measures, but does not provide detailed information on assets and liabilities.

Stella, a Systems Manager for a Large Technology Company, Would