An Organizational Structure Is Important for All of the Following

question 1

Multiple Choice

An organizational structure is important for all of the following reasons except:

• A)ensuring proper accountability.
• B)defining areas of authority.
• C)creating clear lines of reporting.
• D)ensuring a proper commitment to controls.

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Definitions:

Accounts Payable

Liabilities representing amounts a company owes to creditors for goods and services purchased on credit and not yet paid.

Average Days

A measure that typically refers to the average number of days an asset is held or the average number of days it takes for a company to convert certain assets into cash.

Sell Inventory

The process of selling goods that are held for sale in the ordinary course of business, turning inventory into revenue.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.