SUSTAINABILITY AND STRATEGIC AUDIT1. What is the purpose of sustainability accounting and disclosure?2. Why are SASB standards needed in the business world?3. Suppose you are tasked to construct and evaluate complex financial statements,including those relating to group accounts, to show an organization's financialposition and performance. How do SASB standards relate to your task? Direction: Choose the correct answer from the given choices and Explain.1) If an analyst determines that Company A is less likely than Company B to facematerial impacts from environmental and climate risks, what piece of information wouldlikely lead to that conclusion?A. The percent of revenue from coastal regionsB. The percent of revenue from business customersC. The reclaim rate of plastic hotel room keysD. The amount of energy needed to generate $1 of revenue2) An analyst comparing the two companies' management of water use found that, on anormalized basis, Company A was actually outperforming Company B. Whichnormalization did the analyst use?A. Revenue generated per cubic meter of water withdrawnB. Cubic meters of water withdrawn per total number of roomsC. Cubic meters of water withdrawn per average number of occupied roomsD. Percent of water withdrawn from regions with high/extremely high water stress 3) As compared to Company A, how would Company B's performance on energymanagement predominantly impact the valuation model?A. Decrease cost of capitalB. Increase growth projectionsC. Decrease expense projectionsD. Increase book value of assets4) How will performance on SASB metrics impact Company A's valuation as comparedto Company B?A. Company B's higher percentage of revenue from leisure customers will likelydecrease valuation.B. Company B's lower reclamation rate of hotel room keys will likely increase valuation.C. Company A's lower percentage of revenue from coastal regions will likely decreasevaluation.D. Company A's lower voluntary employee turnover rate will likely increase valuation

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Business

Accounting

. What is the purpose of sustainability accounting and disclosure?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 5P

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