An arrangement of line of authority within the company is classified as __________?

Correct answer: B. organization structure

  • A. company structure
  • B. organization structure
  • C. line of authority
  • D. line of responsibility

Explanation

An organization structure sets out authority, reporting relationships, and lines of responsibility within a company. A line of authority is only one element of the complete structure.

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About Accounting Principles

Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

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