A System That Allows Managers Who Will Be Held Accountable

question 21

Short Answer

A system that allows managers who will be held accountable for budgetary performance to participate in the budget's development.

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Definitions:

Accrual

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Accounting Cycle

The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made.