ACC 220 WEEK 3 DQ 2 - of business moves are relevant at the...

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Week 3 Discussion Question 2 Due Date: Day 4 [Main] forum Post your response to the following: How does information from financial reports influence business decisions? Why is it important for business managers to understand the information found on financial reports?
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A financial report offers information to decision makers that simply can not be matched. A company's financial reports gives past, present, and projected future financial data of the company. This is important within the company as well as lenders, investors, and shareholders. The decision to invest in a company, buy stock, lend money, increase or decrease inventory and labor all depend on the financial situation of the company. Financial Reports and the data they hold, influence major decisions in any company. The data that is found there determines the funds that can be used for expansion or growth. Financial reports also tell a manager what types
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Unformatted text preview: of business moves are relevant at the appropriate time. If a manager needs to hire a new employee, or give a raise, or create a budget for meals, then they must know what they are working with so they can prioritize what is important. Not knowing the financial status is like walking blindly and without a guiding stick. You just keep moving until you bump in to something and hurt yourself and that is no way to lead a business. Business managers must understand the information on the company's financial report because if they don't it would be very difficult to, improve, and keep the company running. The manager needs to know how much inventory came in and went out as well as the amount of employees and their wages, the total operating costs of the company and net profits in order to accurately manage the company. In a way, it is like a carpenter without a hammer....
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This note was uploaded on 10/17/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Spring '10 term at University of Phoenix.

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ACC 220 WEEK 3 DQ 2 - of business moves are relevant at the...

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