Which of the Following Statements About the First Step in Gap

question 37

Multiple Choice

Which of the following statements about the first step in gap analysis is true?

• A) An evaluation at this stage should include qualitative elements only.
• B) The firm needs to periodically evaluate where it stands relative to its expectations.
• C) The goals and objectives typically include only short-term time frames.
• D) It is the evaluation of the firm's future direction and its industry.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accrued incomes and expenses for the period.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business resources.

Net Income

The conclusive financial gain of a company upon subtracting every expense and tax from its total sales revenue.

Owner Drawings

Withdrawals of cash or other assets from a company by the owner for personal use.