Question

Which of the following are the standards that can hle used by a company to evaluate the performance of its Finance & Accounting department

Options

• Inventories

• Liquidity

• Both (1) and (2)

• None of the above

Answer 1

Both (1) and (2)

Explanation -

A corporation can use the following standards to evaluate the effectiveness of its Finance & Accounting department:

1. Liquidity
2. Inventories
3. Capital investments
4. Capital Flows