A Financial-Based Responsibility Accounting System Focuses on the Assignment of Responsibility

question 122

True/False

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

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Definitions:

Accounts Receivable

Money owed to a company by its customers from the sale of products or services on credit.

Sales Discounts

From the seller’s perspective, discounts that a seller may offer the buyer for early payment.

Normal Debit Balance

The typical balance that an account should have, where asset and expense accounts usually have debit balances.

Accounts Payable

The short-term liabilities or obligations a company owes to suppliers for goods and services purchased on credit.