The Exception Principle of Management States That _______________

question 72

Multiple Choice

The exception principle of management states that _______________.

• A) face-to-face communication should be avoided whenever possible
• B) all issues should be presented to managers except in cases of dire emergency
• C) managers should only be communicated with on matters of exception
• D) All of the choices are correct.

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Definitions:

Operating Activities

Activities that involve the core business operations of a company, such as selling goods and services.

Depreciation Expense

The allocated portion of the cost of a tangible asset that is expensed in each accounting period during its useful life, reflecting wear and tear, deterioration, or obsolescence.

Indirect Method

A method of preparing the cash flow statement in which net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Operating Activities

These involve the core day-to-day functions and transactions of a business that are directly related to its primary operations, typically reflected in the cash flows from operating activities section of the cash flow statement.