Which of the Following Is Descriptive of Financial-Based Responsibility Accounting

question 109

Multiple Choice

Which of the following is descriptive of financial-based responsibility accounting?

• A)It assumes that activities are linked.
• B)It assigns responsibility to organization units.
• C)Its control emphasis is costs.
• D)Its goal is continuous improvement.

---

Definitions:

Nominal Annual Rates

The stated annual interest rate of a loan or investment, not accounting for compounding within the year.

Compounded Semiannually

The process where interest is calculated and added to the principal sum of a loan or deposit twice a year, leading to interest on interest.

Compounded Quarterly

The calculation of interest where the interest is added to the principal every quarter, thus the total amount of interest earned increases each quarter.

Monthly Compounding

An interest calculation method where the accrued interest is added to the principal sum every month, leading to an increase in the amount of subsequent interest accruements.