Understanding Generally Accepted Accounting Principles Is Not Necessary to Use

question 49

True/False

Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.

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Definitions:

Line Units

Are workgroups that conduct the major business of the organization.

Accounting

The systematic recording, analyzing, and reporting of financial transactions pertaining to a business.

Unity of Command

This principle asserts that each employee should receive orders from only one superior to avoid confusion and conflicts in command.

Hierarchically Connected

Organized or structured in a way that entities are ranked one above the other according to status or authority.