The Detailed Formulation of Action to Achieve a Particular End

question 4

Multiple Choice

The detailed formulation of action to achieve a particular end is the management activity called:

• A) planning.
• B) controlling.
• C) decision making.
• D) all of these are correct.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Post-Closing Trial Balance

A listing of all balance sheet accounts with balances after closing entries are made, used to verify the equality of debits and credits.

Current Ratio

A financial metric comparing a company's current assets to its current liabilities to assess liquidity.

Short-Term Solvency

A company's ability to meet its short-term obligations, often assessed using liquidity ratios.