Efficiency Refers to the Degree to Which Costs Are Reduced

question 48

True/False

Efficiency refers to the degree to which costs are reduced without changing effectiveness. The auditor's opinion as to the appropriateness and sufficiency of evidence in forming an opinion on the financial statements.

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Definitions:

Temporary Account

An account in financial accounting that is used to collect revenues, expenses, and withdrawal information which is transferred to permanent accounts at the end of an accounting period.

Accumulated Depreciation

The total amount of a company's assets' depreciation since the assets were acquired, reflecting how much of the assets' value has been used up over time.

Drawing Account

An account used to record withdrawals of cash or other assets from a business by the owner for personal use.

Final Entries

Journal entries made at the end of an accounting period to prepare accounts for the next period or close the books.