In Order to Better Adapt to New Competitive Demands, Organizations

question 10

Multiple Choice

In order to better adapt to new competitive demands, organizations have needed to make changes in their strategies, structures, management processes, and administrative procedures. Which one of the following is not indicative of such a change?

• A) Organizations are maintaining a focus on small, incremental changes to solve immediate problems.
• B) Organizations are shifting to a horizontal structure.
• C) Organizations are decentralizing decision making.
• D) Companies are incorporating e-business into their strategy.
• E) Organizations are reducing the number of layers of management.

Explain the purposes and processes involved in factoring receivables.

Understand and apply interest calculations for notes receivable.

Journalize transactions using allowance and direct write-off methods for uncollectible receivables.

Understand the methods of accounting for uncollectible receivables.

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Definitions:

Cost of Goods Sold

The total cost directly involved in manufacturing or acquiring the products sold by a company during a particular period.

Acid Test Ratio

A liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Quick Assets

Assets that can be quickly converted into cash without significantly affecting their value, such as stocks and receivables.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid within a year, including accounts payable, short-term loans, and accrued expenses.