Responsibility Accounting Performance Reports

question 105

Multiple Choice

Responsibility accounting performance reports:

• A) Are equally detailed at all levels of management.
• B) Are useful in any format.
• C) Are usually summarized at higher levels of management.
• D) Become more detailed at higher levels of management.
• E) Are irrelevant at the highest level of management.

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Definitions:

Note Receivable

A written promise to pay a specified amount of money, usually with interest, at a future date; it is recorded as an asset on the balance sheet.

Due Date

The specific date by which a payment must be made or a task must be completed.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity at a specified date or on demand.

Face Amount

An amount at which bonds sell if the market rate equals the contract rate.