The Purpose of the Data Processing Department of Haslam Corporation

question 28

Multiple Choice

The purpose of the Data Processing Department of Haslam Corporation is to assist the various departments of the corporation with their information needs free of charge. The Data Processing Department would best be evaluated as a(n) :

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

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within the next year or within the business's normal operating cycle.

Current Liabilities

Obligations of a financial nature due in a year or during the usual business cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.

Operating Cash Flows

Cash generated from a company's regular business activities, indicating the company’s ability to generate sufficient cash to maintain and expand operations.