Tom Is Trying to Save Money by Calling an Important

question 29

Multiple Choice

Tom is trying to save money by calling an important customer instead of flying in to talk to him directly. Tom is trading communication __________ for communication __________.

• A) effectiveness; richness
• B) effectiveness; efficiency
• C) efficiency; effectiveness
• D) None of the above

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Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Accrual

An accounting principle that recognizes revenues and expenses when they are incurred, regardless of when cash transactions occur.