Which of the Following Is Not One of the Common

question 59

Multiple Choice

Which of the following is not one of the common denominators of organizations?

• A) Coordination of effort
• B) Profit motive
• C) Hierarchy of authority
• D) Division of labor
• E) Aligned goals

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for non-cash transactions and changes in working capital.

Operating Activities

Transactions and events that pertain to the primary business operations, impacting the net income and involving cash flows related to operating expenses and revenues.

Indirect Method

A method for preparing cash flow statements where net income is adjusted for changes in balance sheet items to compute cash from operating activities.

Operating Activities

Transactions related to the primary operations of a business, such as sales revenue and expenses, that affect the cash flow.