Rialto Company Experienced an Accounting Event That Affected Its Financial

question 71

Multiple Choice

Rialto Company experienced an accounting event that affected its financial statements as indicated below: $$\begin{array} { | c | c | c | c | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Assets } \\+\end{array} & = & \begin{array} { c } \text { Liab. } \\\text { NA }\end{array} & + & \begin{array} { c } \text { Equity } \\+\end{array} & \begin{array} { c } \text { Rev } \\+\end{array} & - & \begin{array} { c } \text { Exp } \\\text { NA }\end{array} & = & \begin{array} { c } \text { Net } \\\text { Inc. } \\+\end{array} & \begin{array} { c } \text { Cash } \\\text { Flow } \\+ \mathrm { OA }\end{array} \\\hline\end{array}$$ Which of the following accounting events could have caused these effects on Rialto's statements?

• A) Paid a cash dividend.
• B) Earned cash revenue.
• C) Borrowed money from a bank.
• D) None of these.

Identify the characteristics and differences between mechanistic and organic bureaucracies.

Recognize the various ways organizations can be structured, including by function, product, territory, process, or customer.

Explain the concept of centralization and decentralization in decision-making within organizations.

Understand the significance of formalization in an organization, including rules, policies, and procedures.

---

Definitions:

Work-In-Process

Work-in-process (WIP) refers to partially finished goods that are still in the production process at a manufacturing company's inventory.

Payroll

The total amount of wages, salaries, and other earnings paid to employees by a company.

Finished Goods Inventory

The inventory of finished goods available for sale but which remain unsold.

Work-In-Process Inventory

Inventory representing the cost of unfinished goods in the production process at a given point in time.