The Study of Business Operations for the Purpose of Making

question 51

Multiple Choice

The study of business operations for the purpose of making recommendations about the efficient use of resources, effective achievement of business objectives, and compliance with company policies is referred to as

• A)environmental auditing.
• B)financial auditing.
• C)compliance auditing.
• D)operational auditing.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.

Fiscal Period

A fiscal period is the time frame used by governments and businesses for accounting purposes and preparing financial statements, typically a year, quarter, or month.

Adjusting Entry

Adjusting entry refers to a journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring the accounts reflect these amounts accurately.

Supplies

Materials and items used in the daily operations of a business that often have a short life span.