Source Documents

question 49

Multiple Choice

Source documents:

• A) Include the ledger.
• B) Are the sources of accounting information.
• C) Must be in electronic form.
• D) Are based on accounting entries.
• E) Include the chart of accounts.

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Definitions:

Hierarchical Approach

An organizational strategy where decision-making and power are concentrated at higher levels of management, promoting a clear chain of command.

Flat Organizations

A company structure with few or no levels of middle management between staff and executives, promoting a more collaborative and less hierarchical environment.

Differentiation Strategy

A company that uses a differentiation strategy attempts to develop an image or reputation for its product or service that sets the company apart from its competitors.

Diversification Strategy

A business approach where a company broadens its range of products or markets to reduce risk and increase potential for growth.