An Effect of Authority Hierarchy on Two-Way Communication Is That

question 29

Multiple Choice

An effect of authority hierarchy on two-way communication is that low-authority members tend to

• A) Communicate a lot with each other but not with higher-ups
• B) Speak inconsequentially
• C) Do most of the talking
• D) Be very open and frank in their remarks

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Definitions:

Adjusting Entries

Bookkeeping entries made at the end of an accounting period to update accounts for accruals and deferrals.

Insurance Expense

The cost incurred by a company for purchasing insurance policies, which is recognized as an expense over the period the insurance provides coverage.

Prepaid Insurance

An asset account representing insurance premiums that have been paid in advance and are gradually expensed over the period of coverage.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.