What Are the Day-To-Day Relationships That Develop in an Organization

question 118

Multiple Choice

What are the day-to-day relationships that develop in an organization but are not listed on an organization chart called?

• A) informal organization
• B) casual organization
• C) hierarchical organization
• D) grapevine organization

Explain the treatment of non-cash transactions in the cash flow statement.

Understand the impact of stock transactions on the cash flow statement.

Analyze the effect of changes in inventory, receivables, and payables on cash flow from operations.

Interpret the information contained in the cash flow statement to assess the financial health of a company.

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Definitions:

Inter-Relationship of Accounts

The connection and impact that different financial accounts have on each other within the accounting system.

Operations

The day-to-day activities involved in running a business that are necessary for producing and delivering its goods and/or services to the market.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.