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Leadership Question: Balance Sheet or Income Statement

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In your opinion, which is a better indicator of the financial state of an organization: the balance sheet or the income statement? Please provide a reference.

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The balance sheet and income statement give two very different views of financial health. The balance sheet is an immediate short-term view: what resources do they have now and what claims are against those resources? So, if you want a short-term or immediate view of the financial state, the balance sheet will take care of it better than the income statement view.

The income statement view shows the result of the transactions over the ...

Solution Summary

Your discussion is 243 words and two references and recommends the balance sheet under one circumstance and the income statement under another and explains why.

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10 Multiple Choice Questions-Business Management -Author, Robert N. Lussier

Business Management
Author, Robert N. Lussier

1. Behavioral theorist
a. are similar to systems and classical theorists in the way they conceptualize the organization and its problems.
b. Break the organization into its component parts to understand the whole
c. Look at the organization as a whole to understand the interrelationship of its parts
d. All of the above

2. The systems theorist and the contingency theorists both believe
a. people are the se4cret to good management
b. there is no "one best way" to manage
c. there is "one best way" to manage
d. they don't agree on anything

3. Reflexive decision makers often fail to sufficiently
a. define the problem
b. set objectives and criteria
c. generate alternatives
d. analyze and select alternatives
e. plan and implement the decision

4. A manufacturer that begins producing its own components exemplifies
a. concentration
b. forward integration
c. backward integration
d. related diversification
e. unrelated diversification

5. Which of the following is a scheduling technique?
a. planning sheet
b. gantt
c. PERT
d. All of the above

6. One disadvantage of using _________ tis the "ripple effect."
a. internal sources
b. external sources
c. both of the above
d. none of the above

7. Middle-of-the-road management is a style involved in
a. two-dimmensional leadership theory
b. leadership grid
c. both of the above
d. none of the above

8. Both the leadership continuum model and the path-goal leadership model
a. are based on objective data
b. help determine if a person's leadership style matches a particular situation
c. are base on subjective data
d. none of the above

9. Concurrent control is a(n)
a. formal evaluative application of performance appraisal
b. formal developmental application of performance appraisal]
c. informal application of performance appraisal
d. none of the above

10. Normally, stockholders are most interested in the ____________.
a. income statement
b. balance sheet
c. cash flow statement
d. all of the above
e. none of the above

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