Which of the Following Statements Relative to the Theory and Practice

question 101

Multiple Choice

Which of the following statements relative to the theory and practice of management is TRUE?

• A) Academic theories have little application in business because they are not grounded in reality.
• B) The value of theory is that it provides a systematic framework for management activities.
• C) Theory is,by definition,very abstract and quite difficult to understand.
• D) Managers never develop their own theories of how to run an organization.
• E) Management theories tend to be mutually exclusive.

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Definitions:

Adjusting Entries

The journal entries that bring the accounts up to date at the end of the accounting period.

Credit Balance

A situation in a financial account where the total credits exceed the total debits, often indicating an amount owed to the account holder.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet to reflect the amount expected not to be collected.

Accounts Receivable-James

An account showing the amount of money owed to a business by a particular customer, James, for products or services that have been delivered or used but not yet paid for.