An Organizational Structure Is Important for All of the Following

question 51

Multiple Choice

An organizational structure is important for all of the following reasons except:

• A) Ensuring proper accountability.
• B) Defining areas of authority.
• C) Creating clear lines of reporting.
• D) Ensuring a proper commitment to controls.

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Definitions:

Unit Of Measure

A standard quantity used to express an amount of a physical property, financial item, or activity, facilitating comparisons and calculations.

Economic Entity Assumption

An accounting principle that separates the transactions of a business from those of its owners or other businesses.

Cost Principle

The accounting principle that states goods and services should be recorded at their cost at the time of acquisition.

Historical Cost Principle

An accounting principle that requires assets to be recorded and reported at their purchase price, without adjustments for inflation or market value changes.