The Chain of Command Is an Unbroken Line of Authority

question 67

True/False

The chain of command is an unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.

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Definitions:

Periodic Inventory System

An inventory system that updates inventory balances at specific intervals instead of continuously, often requiring a physical count.

General Journal

A primary accounting record where financial transactions are chronologically recorded before being posted to specific accounts in the general ledger.

Purchases Transactions

Activities related to buying goods and services for use or resale by a business.

Sales Transactions

The process of exchanging goods or services for money or other assets, recorded by businesses as revenue.