Responsibility Accounting Is the Concept That

question 109

Multiple Choice

Responsibility accounting is the concept that:

• A) A firm is responsible for reporting to the public all activities that have a social impact, such as pollution control
• B) Each activity within a firm is controlled by a manager who is accountable for costs; costs and revenues; or costs, revenues, and investments, depending on the degree of responsibility assigned
• C) A firm should apply generally accepted accounting principles on a basis consistent with preceding years
• D) A firm should be objective in accounting and should use historical costs rather than current-value concepts

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Definitions:

Japanese Stock Market

The financial market in Japan where publically traded company stocks are bought and sold, notably includes the Tokyo Stock Exchange.

Fixed Exchange Rate

A country's currency value that is tied to another single currency or to another measure of value, like gold, and does not fluctuate in the market.

Covariance

A measure used in statistics and finance to assess how changes in one variable are associated with changes in another variable.

Canadian Stock Market

A financial market in Canada where securities, equities, bonds, and other financial instruments are traded.