In an Internal Capital Market, Capital Allocation Can Be Adjusted

question 95

True/False

In an internal capital market, capital allocation can be adjusted according to more specific criteria than is possible with external market allocation of capital.

---

Definitions:

Crediting Wages Payable

The accounting action of acknowledging that a company owes wages to its employees, which decreases the wages payable account.

Debiting Interest Receivable

The process of recording the amount of interest earned but not yet received in cash as an asset in the accounting records.

Increase Liabilities

The process or action that results in a higher amount of obligations or debts owed by an entity to others.

Decrease Net Income

Refers to a reduction in the net earnings as reported on an entity's income statement, influenced by costs, expenses, or losses.