At the End of the Accounting Period,3 Months' Interest Is

question 16

Multiple Choice

At the end of the accounting period,3 months' interest is owing to the company on a term deposit with the bank.

• A) A liability increases and another liability decreases.
• B) An asset decreases and a liability decreases.
• C) An asset increases and revenue increases.
• D) An asset increases and another asset decreases.

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Definitions:

Hierarchy Of Authority

A system within an organization where authority and power are ranked from the top (highest authority) to the bottom (lowest authority), determining how decisions flow through the organization.

Bureaucracy

An organizational system characterized by standardized procedures, hierarchical structure, and formal rules, often leading to efficiency at the cost of flexibility.

Span Of Control

The number of subordinates directly reporting to a manager.

Subordinates

Employees or team members who are under the direction and control of a senior manager or supervisor in an organizational hierarchy.