Multiple Choice
Which type of accounting is most directly concerned with recording and analyzing transactions such as when a customer is contacted by phone and visited by a sales representative?
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
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Which of the following is NOT a key characteristic of a well-stated organizational objective in accounting?
A
Relevance
B
Time-bound
C
Ambiguity
D
Measurability
Verified step by step guidance1
Understand the concept of organizational objectives in accounting: Organizational objectives are specific goals set by a company to guide its operations and decision-making processes. These objectives should be clear and actionable.
Review the key characteristics of well-stated organizational objectives: These typically include relevance (ensuring the objective aligns with the organization's goals), time-bound (having a specific timeframe for achievement), and measurability (being able to quantify progress or success).
Analyze the term 'ambiguity': Ambiguity refers to a lack of clarity or precision. In accounting, ambiguity is not a desirable characteristic for organizational objectives because it can lead to confusion and misinterpretation.
Compare ambiguity with the other characteristics: Relevance, time-bound, and measurability are all essential for creating effective objectives, while ambiguity contradicts the need for clarity and precision in accounting practices.
Conclude that ambiguity is NOT a key characteristic of a well-stated organizational objective in accounting, as it undermines the clarity and effectiveness of the objective.
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