All of the Following Are Guidelines for Developing a Good

question 4

Multiple Choice

All of the following are guidelines for developing a good coding system except

• A)be consistent with its intended use.
• B)be flexible to allow for growth.
• C)be as sophisticated as possible to promote usage.
• D)be consistent with the company's organization structure.

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Definitions:

Construction Loan

A short-term loan used to finance the building of a property or real estate project, usually converting to a long-term loan after completion.

Notes Payable

Financial obligations or loans represented by a promissory note that a company needs to pay back.

Successful-efforts Method

An accounting method used in the energy industry for recognizing and capitalizing only those expenses associated with successfully locating new oil or natural gas reserves.

Full-cost Method

A method of accounting for all expenditures associated with the exploration and development of oil and gas reserves as capitalized costs, which are then amortized over the total volume of proven resources.