One of Canada's Largest Financial Service Providers, Wanted to Develop

question 127

Multiple Choice

One of Canada's largest financial service providers, wanted to develop a customer-focused sales and service culture, top management developed the main messages, which were consistently communicated to all levels of employees throughout the organization. This is an example of a(n) _____ communication channel.

• A) downward
• B) upward
• C) horizontal
• D) formal
• E) informal

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the books for the next period.

Income Summary

An account used in the closing process during the accounting cycle that summarizes revenues and expenses before transferring the net income or loss to retained earnings.

Owner's Capital

The total value of assets contributed by the owner(s) to a business minus any withdrawals made by the owner(s).

Correcting Entry

An accounting entry made to correct errors found in the financial statements after they have been prepared.