As an Organization Moves to Decentralize Its Operations,an Effective Reporting

question 95

Multiple Choice

As an organization moves to decentralize its operations,an effective reporting system will have ____ when the organization was centralized.

• A)about the same importance as
• B)less importance than
• C)more importance than
• D)a level of importance that depends on organizational size as compared to

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Definitions:

Capital Accounts

Refers to accounts that show the owners' or shareholders' investments in a business, including retained earnings and contributed capital.

Deficiency

A shortfall or insufficiency in amount or quantity, such as when liabilities exceed assets or when actual performance is less than the standard or expected performance.

Market Value

The existing market rate at which you can purchase or sell an asset or service.

Book Value

The value of an asset as shown on a company's balance sheet, calculated as the cost of the asset minus any depreciation and amortization.