The Obligation of Organization Management to Make Decisions and Take

question 15

Multiple Choice

The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization is referred to as

• A) organizational responsibility.
• B) social responsibility.
• C) discretionary responsibility.
• D) economic responsibility.
• E) none of these.

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Definitions:

Accounting Principles

The standardized guidelines and rules followed by accountants to record, report, and summarize financial transactions, ensuring consistency and transparency.

Income Statement

A financial report that calculates a company's performance over a specific period, summarizing revenue, expenses, and profits.

Expense Recognition Principle

An accounting principle that dictates that expenses should be recognized in the period in which they contribute to the generation of revenue.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, indicating its financial performance.