Which of the Following Is True of Action Plans

question 42

Multiple Choice

Which of the following is true of action plans?

• A) They are the original plans developed by top managers for the organization as a whole.
• B) They are created by answering the questions what, who, when, where, and how.
• C) They are plans implemented when the original plans do not work out.
• D) They cannot be used as a tool to meet desired organizational objectives.

Understand the process and rationale behind the calculation of pension expense components.

Understand the scope and limitations of the FASB’s conceptual framework project.

Identify the number and purpose of Statements of Financial Accounting Concepts issued.

Recognize the general and specific objectives of financial reporting according to the FASB.

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Definitions:

Schedule E

A form used for reporting income from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs on a tax return.

Investment Expenses

Fees and other costs incurred in connection with the management and operation of investments.

Net Income

The amount of earnings a company or individual has after subtracting all expenses, taxes, and deductions from total revenue.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life, useful for reducing taxable income by recognizing the asset's expense over several years.