All Other Things Held Equal

question 154

Multiple Choice

All other things held equal

• A)the more frequent the controlling activity,the slower an out-of-control process will be corrected.
• B)the more frequent the controlling activity,the faster an out-of-control process can be corrected.
• C)the more frequent the controlling activity,the more likely employees are to ignore the control.
• D)the more frequent the controlling activity,the less likely employees are to ignore the control.

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Definitions:

Capital Balance

The amount of money that a partner in a business has contributed to the business minus any withdrawals or distributions.

Bonus Method

The bonus method is an accounting approach used in partnership transactions to reflect changes in the capital accounts of the partners when no actual cash is paid out or received.

Capital Balances

Refers to the amount of capital reported on the balance sheet, including funds contributed by owners or shareholders plus retained earnings.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.