Complexity in Accounting Systems _____

question 152

Multiple Choice

Complexity in accounting systems _____.

• A)is desirable if it reflects the complexity of the underlying business
• B)can usually be justified on a cost-benefit basis
• C)is necessary to manage the behavioral implications of the accounting system
• D)frequently generates costs of gathering and interpreting data that often exceed prospective benefits

Acknowledge the utilization of brain imaging technologies in understanding the biological basis of behavior.

Recognize the importance of sample representativeness and random sampling in survey research.

Appreciate the ethological approach in studying behavior in natural contexts to minimize observation effects.

Understand the components and importance of time series in forecasting.

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Definitions:

Mortgage Payable

A liability account on the balance sheet representing the borrower's obligation to repay a loan used to purchase property.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Ending Inventory

The sum total of goods for sale at the termination of an accounting cycle.

Periodic Method

An inventory accounting system where cost of goods sold is determined at the end of an accounting period, not upon sale.