Which of the Following Is an Advantage of a Functional

question 143

Short Answer

Which of the following is an advantage of a functional structure?
Functional areas get approval from top management for a variety of decisions.
Expertise develops within each function.
No single function is responsible for overall company performance.
Conflicts between functional areas may arise.
None of these

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, as opposed to the accrual basis.

Revenue Recognition

The accounting principle that governs the conditions under which revenue is recognized in the financial statements, ensuring it is recorded when earned.

Payment

It is the transfer of money or goods from one party to another as a settlement of an obligation.

Adjusted

Modified or changed in order to correct or improve the financials, often used in the context of financial statements to present a particular item in a way that reflects its true economic impact.