What Is One of the Ways That Accounting Is Used

question 20

Multiple Choice

What is one of the ways that accounting is used to direct and control the manager of a corporation?

• A) Linking of a mangers performance to a bonus that depends on accounting profit
• B) Making decisions based on the accounting information regardless of managerial input.
• C) Threatening to tell shareholders a mangers income if a manager makes a 'poor financial' decision.
• D) Using income smoothing to assure a manager that they can invest in a low risk investment.

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Definitions:

Erosive Power

The ability of natural agents, like water, wind, and ice, to wear away the surface of the Earth through the process of erosion.

Stream Velocity

The speed at which water flows in a stream or river, usually measured in meters per second, critical for sediment transport and erosion processes.

Geologic Agent

A natural force that causes geological phenomena, such as water, ice, wind, and plate tectonics.

Stream Bed

The bottom of a stream or creek where water flows, typically consisting of sediment, rocks, and organic matter.