The Difference Between Long-Term and Short-Term Objectives Is Principally

question 72

Multiple Choice

The difference between long-term and short-term objectives is principally:

• A) Greater attainability
• B) Greater flexibility
• C) Greater measurability
• D) Greater specificity

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances to reflect accurate and fair financial statements.

Closing Entry

An accounting entry made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period, transferring the net income or loss to the owner's equity.

Revenue

The aggregate financial gain acquired by a company from its essential sales activities involving goods or services.