Question

What are some performance measures or types of performance reports you find useful? Why?

Answer 1

Some of performance measures are as follows:

1. Liquidity ratio : It indicates the company ability to repay its short term loans.

2. Profitability ratios: It shows how well a company can generate profit from its operating activities.

Some of the performance reports are as follows:

1. Balance score card: It allows the organization to align its strategic activities to its strategic plan.

2. Cash flow statement: It indicates how well the funds of the entity are being utilized.