Which of the Following Is an Example of a General

question 33

Multiple Choice

Which of the following is an example of a general authorization?

• A)The highest credit limit allowed for accounts receivable is $50 000.
• B)ABC Company has a credit limit of $25 000.
• C)Each supervisory wage rate must be approved by the executive manager.
• D)Grocery supervisors approve each transaction reversal over five dollars.

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Definitions:

Accounting Period

A specific time period for which financial information is reported, commonly a year or a quarter.

Calendar Year

A period of time that starts on January 1 and ends on December 31, used for accounting and official purposes.

Debit Part

The left side of an accounting entry, which increases assets and expenses and decreases liabilities and equity.

Journal Entry

A recording of a business transaction in an accounting journal, indicating the financial effects of the transaction.