The Responsibility Center in Which the Manager Has Responsibility and Authority

question 76

Multiple Choice

The responsibility center in which the manager has responsibility and authority over only revenues and costs is

• A)a cost center.
• B)an investment center.
• C)a profit center.
• D)a revenue center.

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Definitions:

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Financial Capital

Financial capital involves funds provided by lenders and investors to businesses to purchase real capital equipment for producing goods/services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering insight into its financial position.

Fair Value

The estimated market value of an asset or liability, based on current prices in an open market.