The Accumulation of Accounting Data on the Basis of the Individual

question 20

Multiple Choice

The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called

• A) static reporting.
• B) flexible accounting.
• C) responsibility accounting.
• D) master budgeting.

---

Definitions:

Post-closing Trial Balance

A summary listing of all company accounts that remain after closing entries have been made, serving as a check that debits equal credits.

Owner's Capital Account

An equity account on the balance sheet representing the total amount of investment made by the owner(s) in the company, including profits retained in the business.

Balance Sheet Accounts

These are the financial accounts that appear on the balance sheet, including assets, liabilities, and equity accounts, representing the financial position of a company at a specific point in time.

Permanent Accounts

Financial accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.