In General, for Companies Using ROI, the Most Profitable Divisions

question 96

True/False

In general, for companies using ROI, the most profitable divisions have more incentive to invest in new projects than do the least profitable divisions.

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Definitions:

Debits

Accounting entries that increase assets or expenses and decrease liabilities, equity, or revenue, recorded on the left side of accounting ledgers.

Credits

Accounting entries that increase liabilities or decrease assets, or record income in double-entry bookkeeping.

Journal Entry

A Journal Entry is a record in bookkeeping that logs the debit and credit parts of a financial transaction in accounting.