Which of the Following Is a True Statement About the Assessment

question 17

Multiple Choice

Which of the following is a true statement about the assessment of organizational success?

• A) A firm's stock price provides a complete evaluation of organizational success.
• B) The accurate method of assessing an organization's success is by measuring the number of units produced.
• C) An organization's success needs to be assessed by examining the state of multiple indicators.
• D) Financial indicators are more important than human resource indicators while assessing an organization's success.
• E) An effective performance-enhancement program has no impact on an organization's success.

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Definitions:

Allowance Method

An accounting technique used to estimate and record uncollectible accounts receivable, reducing the net value of accounts receivable to an amount expected to be collected.

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred till a later date, typically employed in business-to-business transactions.

Uncollectible Accounts

Receivables that are deemed to be uncollectable from debtors, leading to their recognition as a loss.

Credit Policy

Guidelines that define the credit limits and terms extended by a business to its customers.