Barnard's Theory on the Acceptance of Managerial Authority States That

question 93

Multiple Choice

Barnard's theory on the acceptance of managerial authority states that

• A) supervisors have inherent authority.
• B) supervisors have charismatic authority.
• C) if subordinates view a supervisor's directive as appropriate to organizational goals,they will accept his or her authority.
• D) so long as subordinates are able to comply with a supervisor's directives,they will accept his or her authority.
• E) supervisors have no authority unless subordinates are willing to grant it to them.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used to adjust the gross accounts receivable to its net realizable value.

Estimate

An approximate calculation or judgment of the value, number, quantity, or extent of something, often used in planning and decision-making.

Balance Sheet Approach

A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.

Bad Debts Expense

The portion of receivables that a company does not expect to collect and writes off as a loss.