A User's Main Demand Is for Credible Periodic Reporting of an Enterprise's

question 43

Multiple Choice

A user's main demand is for credible periodic reporting of an enterprise's financial position and performance.Credible means:

• A) 100 per cent accurate.
• B) easily understandable by users of financial statements.
• C) sufficiently trustworthy and competently prepared for it to be used to make decisions.
• D) relevant to the needs of decision-makers.

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Definitions:

Insourcing

The practice of assigning tasks or projects to personnel within the organization instead of outsourcing to external entities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Subcontracts

Secondary contracts that are assigned by a primary contractor to third parties to perform part of the work originally contracted.

Prime Contractor

The main contractor who has a direct contract with the client and takes overall responsibility for the execution of a project, subcontracting parts of the work to others as necessary.