Activity-Based Responsibility Accounting Adds Which of the Following to the Financial-Based

question 39

Multiple Choice

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

• A)consumer perspective
• B)functional perspective
• C)process perspective
• D)learning perspective

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Definitions:

Financial Statements Linkage

The connection and relationship between different financial statements (e.g., balance sheet, income statement, cash flow statement) to assess the financial health of a business.

Retained Earnings

The cumulative amount of profit retained by the company and not paid out in the form of dividends to owners.

Net Income

The total earnings or profit of a company after subtracting all expenses, taxes, and costs, also known as net earnings.

Goodwill

The price paid for an asset in excess of its book value. You will see this on the balance sheet when the company has made one or more large acquisitions.