Financial management requires that you have some method to measure and compare your financial position and financial results.Your financial position is reflected on your _______,your financial results on your _______.

Question

Quizplus · Accepted Answer

The balance sheet reflects your financial position, as it lists your assets, liabilities, and equity at a specific point in time. The income statement reflects your financial results, as it shows the revenue, expenses, and profits or losses over a certain period of time. Therefore, choice B is the correct answer. The other choices are incorrect because the master budget is a planning document that outlines your expected financial results, and the return on investment is a performance metric that measures the profitability of an investment.

Financial Management Requires That You Have Some Method to Measure