Question

What function is an employee of a firm conducting when he or she systematically collects, analyzes, and reports the financial information to the company in the form requires to make decisions about a firm's financing, investing, marketing, and operating activities?

A) Financial Reporting
B) Financial Analysis
C) Budgeting
D) Auditing

Answer 1

The function that an employee of a firm is conducting when systematically collecting, analyzing, and reporting financial information is Financial Reporting.

Step-by-step explanation:

The function that an employee of a firm is conducting when systematically collecting, analyzing, and reporting financial information to make decisions about financing, investing, marketing, and operating activities is Financial Reporting. Financial reporting involves preparing and presenting financial statements and other financial information to provide stakeholders with an accurate and reliable picture of a firm's financial performance and position.

For example, financial reports such as income statements, balance sheets, and cash flow statements are used by managers, investors, creditors, and other stakeholders to assess a company's profitability, liquidity, solvency, and overall financial health.