Most companies that prepare departmental income statements typically don't prepare departmental balance sheets.

Question

Quizplus · Accepted Answer

Most companies focus on preparing departmental income statements to assess the profitability of different segments of their business, but they often do not prepare departmental balance sheets because assets and liabilities are usually managed at a more centralized level rather than attributed to specific departments.

Most Companies That Prepare Departmental Income Statements Typically Don't Prepare