The Practice of Showing Everyone Involved in a Business the Numbers

question 46

Multiple Choice

The practice of showing everyone involved in a business the numbers that are critical to the performance of the business is called which of the following?

• A) democratic management
• B) open-book management
• C) financial management
• D) human resource management

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Definitions:

Prospective Adjustment

An accounting adjustment applied to transactions or valuation changes that occur in the current or future accounting periods.

Adjusting Events

Events after the balance sheet date that provide further evidence of conditions that existed at the end of the reporting period, requiring adjustments to financial statements.

Non-Adjusting Events

Events after the reporting period that do not provide new information about conditions existing at the end of the reporting period.