CMA Intermediate · Financial Management and Business Data Analytics · Data Analysis and Modelling
Which feature best describes an effective executive financial dashboard for a listed company?
An effective executive dashboard presents a few key performance indicators using suitable charts and clear labels, with drill-down for detail. It summarises information at a glance, whereas raw ledgers, plain tables or decorative 3D visuals clutter and hinder quick decisions.
- ADetailed ledger entries of every transaction on one page
- BFew key performance indicators with appropriate charts, clear labels and drill-down where neededCorrect
- COnly raw data tables without any graphics
- DDecorative 3D charts with many colours to attract attention
Explanation
An effective dashboard summarises key indicators at a glance using suitable visuals and clear labels, with drill-down available for detail. Showing every ledger entry or raw tables defeats the summarising purpose, and decorative 3D effects distort perception and add clutter.
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