Which of the Following Statements About Using More Sophisticated Planning

question 42

Multiple Choice

Which of the following statements about using more sophisticated planning models is true?

• A) Current liabilities are likely to vary directly with sales.
• B) Long-term liabilities and equity accounts change as a direct result of managerial decisions.
• C) Retained earnings will vary as sales changes but not directly as it is affected by the firm's dividend payout policy.
• D) All of these

Identify the characteristics and applications of rules and standard operating procedures in decision making.

Comprehend the influence of organizational hierarchy on the nature of problems encountered.

Recognize the implications of cognitive biases in decision-making processes.

Understand the concept and examples of non-programmed decision making.

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Definitions:

Revenues

Sum of income from the primary business activities of a company, which includes sales of its products or services.

Unearned Revenues

Money received by a company for goods or services that have yet to be delivered or performed, considered a liability until earned.

Liabilities

Liabilities represent debts or financial obligations that a company owes to others, which must be settled over time through the transfer of economic benefits.

Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest in a company.