Responsibility Reports Are Prepared

question 31

Multiple Choice

Responsibility reports are prepared:

• A) for each manager who controls a responsibility center.
• B) only at the end of the accounting period.
• C) to identify and punish managers who fail to control their costs.
• D) for senior-level managers only.

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Definitions:

Receivables

Money owed to a company by its customers or other parties for goods or services provided on credit, recorded as an asset on the balance sheet.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Days Sales In Inventory

A financial metric indicating the average time it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.