Which of the Following Is Not a Characteristic of an Effective

question 67

Multiple Choice

Which of the following is not a characteristic of an effective responsibility accounting system?

• A) Reports that show the areas that need corrective action
• B) Reports that show revenue and/or expense items under a manager's control
• C) Reports that show budgeted and actual amounts of controllable revenue and expense items
• D) Reports that set goals for long-term strategic performance

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Definitions:

Cash Realizable Value

The amount of money that could be received from selling or disposing of an asset after accounting for all associated costs.

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid.

Merchandise Sale

The transaction of selling goods that are purchased for resale by a business.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on-demand or at a specified future date.