Which of the Following Statements Is False Concerning a Management

question 47

Multiple Choice

Which of the following statements is false concerning a management control system?

• A)A management control system may be referred to as a black box.
• B)A management control system should serve as a guide to organizations.
• C)A management control system should help implement strategies.
• D)A management control system is separate from a cost management system.

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Definitions:

Trial Balance

A financial spreadsheet where all ledger balances are gathered into columns for debits and credits, ensuring both totals match.

Debit Column

The left-hand side of a ledger account, recording increases in assets and expenses, and decreases in liabilities, equity, and revenue.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the period in which they are incurred to earn revenues.

Efforts

The use of physical or mental energy to achieve tasks and goals.