In the Context of Changing Environments, Identify a True Statement

question 119

Multiple Choice

In the context of changing environments, identify a true statement about environmental uncertainty.

• A) It is most likely to be high when there is technological stability in the industry.
• B) It is most likely to be high when the industry is at an equilibrium state.
• C) It is most likely to be low when environmental complexity is at a low level.
• D) It is most likely to be low when environmental change is extensive.

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Definitions:

Adjusting Entry

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

Unrelated Year-end Adjustments

Adjustments made to the financial statements at year-end that do not pertain to the normal operations of the business.

Prepaid Insurance

An asset account representing payments made for insurance coverage before the coverage period.

Accrued Salaries

Salaries that have been incurred but not yet paid; an expense that represents the amount of salary earned by employees but not disbursed by the end of the accounting period.