Which of the Following Statements Is Not True About a Firm

question 13

Multiple Choice

Which of the following statements is not true about a firm and its project accounting?

• A) each firm has its own rules with regard to the allocation of overhead
• B) most firms must comply with the Sarbanes-Oxley Act
• C) the project manager must rely on the accounting department to make special allowances for his/her project
• D) most firms have their own accounting idiosyncrasies
• E) unexpected charges may suddenly appear when the PM least expects it

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers accounts to check the mathematical accuracy of the bookkeeping entries.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Accounts Classified

The organization of accounts into categories within financial statements, typically as assets, liabilities, equity, revenue, and expenses.

Ledger

A book or collection of financial accounts where all transactions are recorded, usually divided into debits and credits.