A Responsibility Accounting System Could

question 56

Multiple Choice

A responsibility accounting system could:

• A)exclude all uncontrollable costs
• B)exclude controllable costs
• C)segregate uncontrollable costs from controllable costs
• D)Both A and C are correct.

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Definitions:

Adjusting Entries

Records entered into accounting logs at the close of an accounting period to assign earnings and expenses to the period they truly happened.

Worksheet

A document or spreadsheet used in accounting to compile data and calculations for reporting purposes.

Income Statement

A financial document summarizing a company's revenues, expenses, and profits over a specific period, showing its operational performance.

Post-Closing Trial Balance

A list of all account balances after closing entries are made, used to check the equality of debits and credits and prepare for the next accounting period.