Which Process Includes These Three Steps-Establish Clear Performance Goals, Measure

question 10

Multiple Choice

Which process includes these three steps-establish clear performance goals, measure actual performance against standards, and take corrective action if necessary?

• A) leading
• B) control
• C) planning
• D) organizing

---

Definitions:

Income Summary Account

A temporary account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.

Permanent Accounts

Permanent accounts refer to the balance sheet accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Revenue Recognition Principle

An accounting principle that dictates the specific conditions under which revenue is recognized or recorded, ensuring it's captured in the period it is earned.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period, simplifying record-keeping.