The Setting of Objectives and the Identification of Methods to Achieve

question 25

Multiple Choice

The setting of objectives and the identification of methods to achieve those objectives is called

• A) planning.
• B) controlling.
• C) performance evaluation.
• D) decision making.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Discount on Bonds Payable

Discount on bonds payable represents the difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Premium on Bonds Payable

The excess of a bond's selling price over its principal amount.

Debenture Bonds

Fixed-interest unsecured loans issued by companies, backed only by the creditworthiness and reputation of the issuer, rather than by a lien on any specific asset.