Operational Control Systems Can Be Distinguished from Financial Control Systems

question 176

Multiple Choice

Operational control systems can be distinguished from financial control systems:

• A) In the time horizon: financial-control systems have a long-term perspective.
• B) Because they focus on the control of basic business processes.
• C) Because such systems rely on the use of flexible, not static, budgets.
• D) Because they focus on explaining the total operating income variance for a period.
• E) Because they do not include nonfinancial performance indicators.

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Definitions:

General Journal

A primary accounting record used to record all types of transactions before they are posted to specific accounts in the general ledger.

General Journal

A primary accounting record used to record all types of accounting transactions before they are posted to individual accounts in the general ledger.

Legal Fees Revenue

Income earned by businesses or individuals through providing legal services.

General Journal

A fundamental accounting ledger where financial transactions are initially recorded before being transferred to specific accounts in the ledger.