Line Authority Relates to the Number of Employees to Report

question 109

True/False

Line authority relates to the number of employees to report to a supervisor,whereas staff authority relates to the manner in which individuals in management positions have formal power to direct and control immediate employees.

---

Definitions:

Net Asset Balance

The total assets minus total liabilities of a company, showing the net book value of the company's equity.

Restricted Fund Method

An accounting method used by not-for-profit organizations to distinguish between resources that are restricted by donor-imposed stipulations and those that are not.

Internally Restricted

Funds or assets within an organization that are designated for a specific purpose by the entity's management, not external restrictions.

Externally Restricted

Funds or resources that are restricted in use by external parties or agreements, often specified for particular purposes or projects.