Concerning the Grapevine,all of the Following Statements Are Correct EXCEPT

question 28

Multiple Choice

Concerning the grapevine,all of the following statements are correct EXCEPT:

• A) The grapevine is an informal communication channel.
• B) Information on the grapevine is wrong most of the time.
• C) The grapevine is a frequent source of information for employees.
• D) Grapevines convey information rapidly.

---

Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Aging of Receivables Analysis

A method used to assess the financial health of a company's accounts receivable by categorizing outstanding invoices by their due dates.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected not to be collected.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, recognized as an expense.