Which of the Following Is True About the Traditional Organization

question 76

Multiple Choice

Which of the following is true about the traditional organization chart constructed in pyramid form?

• A) Lines between boxes designate informal lines of communication between individuals.
• B) Relative positioning of individuals within boxes on the chart indicates broad social relationships.
• C) Individuals toward the top of the pyramid have more authority than those toward the bottom.
• D) Such organizational charts cannot communicate the complexity of the organization.
• E) Individuals toward the bottom of the pyramid have more responsibility than those toward the top.

---

Definitions:

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable on a balance sheet, reflecting the amount of receivables a company believes it will not collect.

Estimated Uncollectible

The anticipated portion of receivables that a company expects not to collect.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Open Account

A credit arrangement where goods or services are provided to a customer with the understanding that the customer will pay the supplier at a later date.