Perform the Operation, If Possible

question 67

Multiple Choice

Perform the operation, if possible.
-

Apply understanding of accounting principles to categorize transactions correctly.

Evaluate the completeness and accuracy of accounting records.

Understand the impact of transactions on owner's equity and net income.

Recognize the subdivisions of owner's equity.

---

Definitions:

Responsibility Centers

Divisions or units within an organization for which managers are accountable for certain activities or financial outcomes.

Management by Exception

A management strategy where only significant deviations from expected outcomes are addressed, focusing leaders' attention on the most important issues.

Responsibility Accounting

An accounting system that measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome.

Responsibility Reporting System

The preparation of reports for each level of responsibility in the company’s organization chart.