In a Responsibility Accounting System,the Recording of Revenue and Costs

question 4

Multiple Choice

In a responsibility accounting system,the recording of revenue and costs begins with the:

• A)Most profitable segments of the business.
• B)Least profitable segments of the business.
• C)Broadest areas of management responsibility.
• D)Smallest areas of management responsibility.

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Definitions:

Reasonable Assurance

A high level of assurance provided by auditors indicating that financial statements are free from material misstatement, though not a guarantee.

Accrue

The accumulation or increase of something over time, especially payments or benefits that are recognized before cash is exchanged.

Endowment Contributions

Gifts made to institutions, typically non-profit organizations or universities, intended to be invested to support the organization’s long-term financial health.

Restricted Fund Method

An accounting approach used for reporting where resources are segregated based on restrictions or designations imposed by donors or regulators.