Laurie and Milton Were Developing a Business Process Management Plan

question 70

Multiple Choice

Laurie and Milton were developing a business process management plan for their organization.After deciding to focus on the process of purchasing fixed assets, they should:

• A)Determine how the fixed asset purchasing process currently works.
• B)Estimate the remaining useful life for each fixed asset in the company.
• C)Look up the definition of "fixed assets" on the FASB web site.
• D)Make the improvements they believe are necessary.

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Definitions:

Common Shares

Equity securities that represent ownership interests in a corporation, providing voting rights and dividends.

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting accumulated depreciation from the asset's cost.

Dividends in Arrears

Outstanding dividends on cumulative preferred stock that have not been paid by the corporation by the specified payment date.

Journal Entry

A record of a business transaction in an accounting system, which includes debits and credits in appropriate accounts to maintain the ledger's accuracy.