The Five Components of Internal Environment Include Mission, Value, System

question 20

True/False

The five components of internal environment include mission, value, system processes, resources, and organization.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.

Long-term Note Payable

A liability in the form of a written promise to pay a specified sum of money, with a maturity of more than one year from the date of issuing.

Accrual Accounting

An accounting method where transactions are recorded when they are earned or incurred, rather than when cash is exchanged, providing a more accurate financial picture.

Adjusting Process

The adjusting process in accounting involves making entries at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.