The Formal and Legitimate Right of Managers to Make Decisions

question 115

Multiple Choice

The formal and legitimate right of managers to make decisions is called their _____.

• A) delegation
• B) responsibility
• C) authority
• D) span of management
• E) leadership

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Definitions:

Adjusting Entries

Entries in accounting journals, made at the termination of an accounting cycle, serve to apportion incomes and outlays to their actual occurrence period.

Unearned Revenue

Money received by an entity for a service not yet performed or a product not yet delivered. It is recorded as a liability until the service or product is delivered.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.