What Principle Specifies That an Employee Should Report to Only

question 13

Multiple Choice

What principle specifies that an employee should report to only one superior?

• A)Line of authority
• B)Unity of command
• C)Centralization
• D)Job specialization
• E)Job design

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Definitions:

Recognition

The process of recording an item or event in financial statements once it meets the criteria for financial reporting as defined by accounting standards.

Matching Principle

An accounting principle that requires companies to report expenses at the same time as the revenues they are related to are earned.

Matching Expenses

An accounting principle that matches expenses with the revenues they generate within the same accounting period.

Revenue Recognition Principle

An accounting principle that dictates how and when revenue is accounted for and reported, emphasizing that income is recognized when earned, regardless of when cash is received.