Which of the following statements is true regarding a centralized organization?
A) A centralized organization is more flexible than a decentralized organization.
B) In a centralized organization, decision making is pushed down to the managers closest to the action.
C) A centralized organization is more responsive than a decentralized organization.
D) In a centralized organization, top managers are rarely involved in decision making.
E) In a centralized organization, decision making is concentrated at a single point in the organization.
E
Explanation: E) Centralization refers to the degree to which decision making is concentrated at a single point in the organization. In centralized organizations, top managers make all the decisions, and lower-level managers merely carry out their directives.
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Which of the following is a TRUE statement regarding expenses?
A) Expenses represent future benefit to the company. B) The expense recognition principle recognizes revenue in the same period in which the related revenues are earned. C) Expenses will never result in the creation of a liability account. D) The critical event for recording salary expense is the payment of cash.
Explain the rules regarding the accounting periods available to corporate taxpayers