If X-Corp'S Car Polish Division Has Committed to a 30 Percent

question 43

Multiple Choice

If X-Corp.'s car polish division has committed to a 30 percent gain in revenue over six years,they must consider the specific target in revenue during the current quarter to indicate they are making appropriate progress.This smaller objective for the fiscal quarter is called a:

• A) Short-term objective
• B) Short-term technique
• C) Long-term objective
• D) Strategic goal

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Definitions:

Accrual

A financial recording approach that logs income and expenditures at the time they occur, irrespective of the actual cash transaction timing.

Adjusting Journal Entry

A type of journal entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Accrual

The accounting practice that documents income and expenditures at the time they happen, irrespective of the timing of the actual cash flows.

Retained Earnings

The amount of net profit remaining for the company after distributing dividends to its stockholders.