Responsibility Account Performance Reports

question 119

Multiple Choice

Responsibility account performance reports:

• A) Become more detailed at higher levels of management.
• B) Become less detailed at higher levels of management.
• C) Are equally detailed at all levels of management.
• D) Are useful in any format.
• E) Are irrelevant.

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Definitions:

Compensating Balance

A minimum bank account balance that a borrower is required to maintain as a condition for some forms of loans or line of credit.

Petty Cash Fund

A small amount of cash kept on hand to pay for minor, incidental expenses of a business, recorded as a current asset on the balance sheet.

Cash Short

A situation where the actual cash on hand is less than the recorded amount in the accounting records, often resulting in a discrepancy during reconciliation.

Petty Cash Receipts

Documentation of small amounts of cash expenditures from a petty cash fund, used for minor business expenses.