Most companies that prepare departmental income statements also prepare departmental balance sheets.

Question

Quizplus · Accepted Answer

While departmental income statements show the performance of each department, departmental balance sheets may not be necessary since departmental assets and liabilities are usually tracked on the company's overall balance sheet. Therefore, it's not always true that companies that prepare departmental income statements also prepare departmental balance sheets.

Most Companies That Prepare Departmental Income Statements Also Prepare Departmental