Which of the Following Is True of Creating an Obligation

question 40

Multiple Choice

Which of the following is true of creating an obligation during the process of delegating?

• A) Creating an obligation is the first step in the process of delegating.
• B) Following delegation, both employees and supervisors have responsibility for the work.
• C) Once an employee accepts responsibility, the supervisor is not held responsible.
• D) Supervisors can force employees to feel responsible when employees are reluctant.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities and preferred stock, often used to determine the potential value of a company if it were to be liquidated.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus depreciation or amortization.

Unearned Ticket Revenue

Revenue received from ticket sales before the event or service has been provided; also considered a liability until earned.

Adjusting Journal Entry

An accounting record posted at the conclusion of a fiscal period with the purpose of assigning revenues and expenses to their correct time frame.