An Organization Chart Is Often Used to Depict the Structure

question 24

Multiple Choice

An organization chart is often used to depict the structure of an organization.The chart is also used to

• A)present a "snapshot"of the firm at a particular point in time.
• B)indicate the types of departments established in the firm.
• C)specify duties and responsibilities.
• D)clarify the chain of command and show who is accountable to whom.
• E)do none of the above.

---

Definitions:

Net Income

The final earnings of a company after total revenue has had all taxes and expenses removed.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the entity's operating cycle.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.