A global technology firm reported in its 2022 financial summary that three out of its six product lines were profitable, a significant increase from the previous year when only the mobile division showed a profit. The Chief Financial Officer attributed this success to the launch of innovative software solutions targeting small businesses.

Which of the following, if true, would most seriously weaken the CFO's assertion regarding the reasons for the firm's improved financial results?

Answer Choices

Correct answer marked below

The technology firm introduced several new software products that were well-received by small businesses last year.

The other product lines experienced a rise in sales due to a general increase in market demand.

The firm implemented a new accounting policy that allowed it to recognize revenue from sales earlier than before.

Correct

The company reduced its workforce in the unprofitable divisions to cut costs significantly.

The firm's mobile division had previously been the only profitable line for several years.

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Explanation

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Official Explanation

Official

To determine which statement most seriously weakens the CFO's assertion, we need to analyze the options. The CFO claims that the improved financial results are due to the launch of innovative software solutions for small businesses. If the new accounting policy allowed the firm to recognize revenue earlier, this could mean that the…

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Comments

JotiFeb 20, 2025

Great question!

ChristinaAug 14, 2024

Thank for sharing!

UmairJul 6, 2024

greatt question!

What this question tests

What it tests

Whether you can identify the option that most undermines an argument's conclusion.

Common trap

Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.