Responsibility Reports Should Be Simple,show Variances Between the Budgeted and Actual

question 115

True/False

Responsibility reports should be simple,show variances between the budgeted and actual amounts of controllable revenue and expense items,and be timely.

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Definitions:

Current Liability

An obligation due to be paid within a year, including accounts payable, short-term loans, and other similar debts.

Notes Payable

Financial obligations represented by promissory notes, where the borrower agrees to pay back a specified sum of money on demand or at a determined future date.

Prepaid Expenses

Expenses paid in advance by a company for goods or services to be received in the future.

Adjusting Process

The procedure used in accounting to record and reconcile expenses and revenues in the appropriate accounting period.