Which of the Following Defines the Relationships of Authority from One

question 142

Multiple Choice

Which of the following defines the relationships of authority from one level of organization to the next, from top to bottom?

• A) chain of accountability
• B) chain of order
• C) chain of command
• D) functional chain

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Definitions:

Journalized

The process of recording financial transactions in a company's journal, which is the first step in the accounting cycle.

Adjusting Entries

Ledger adjustments made at an accounting period's end to distribute income and spending according to the period they occurred.

GAAP

A body of accounting and financial reporting standards and rules widely adopted, defined as Generally Accepted Accounting Principles.

Revenue Recognition

The accounting principle that revenue should be reported at the time goods are sold or services are rendered, regardless of when the payment is received.