If the Perpetual Inventory System Is Used, an Account Entitled

question 33

True/False

If the perpetual inventory system is used, an account entitled Cost of Goods Sold is included in the general ledger.

Identify the environmental factors influencing organizational functionality and design.

Recognize the importance of organizational design in facilitating effective communication and goal accomplishment.

Distinguish between different organizational designs: network, multidivisional, geographical, and product designs.

Assess the impact of organizational design on decision making, information flow, and response to environmental changes.

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Definitions:

Operating Activities Section

Part of a cash flow statement that shows the cash generated or used by a company’s core business operations.

Equipment Sold

Refers to assets that were once part of a company’s operational resources but have been disposed of in exchange for cash or other assets.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.