A Principle of Responsibility Accounting Is That Managers Are Responsible

question 29

True/False

A principle of responsibility accounting is that managers are responsible for controllable and uncontrollable costs.

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Definitions:

Aging Schedule

A table summarizing the amounts owed to a business, grouped by the length of time the bills have been outstanding, used to monitor and manage receivables.

Old Accounts Receivables

Outstanding invoices a company has yet to collect from customers past the due date.

Percentage of Receivables Basis

An accounting method used to estimate the amount of receivables that will not be collected by calculating a percentage of the total receivables.

Income Statement Relationships

The connections between various financial items on the income statement, illustrating how sales revenue affects net income.