Rebecca Works for a Company That Has Clearly Defined Lines

question 88

Multiple Choice

Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks. Employees are also aware of the company's reporting structure as well as successive management levels all the way to the top. Rebecca's company follows which underlying principle of the chain of command?

• A) Work specialization
• B) Unity of command
• C) Scalar principle
• D) Division of labor
• E) Responsibility

Understand the difference between accrual-basis and cash-basis accounting and why GAAP prefers accrual-basis.

Comprehend the purpose of adjusting entries and their role in the accounting cycle.

Identify the various types of adjusting entries and their impact on financial statements.

Recognize the principles of revenue recognition and the matching principle as foundations of accrual accounting.

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