Match the Following Statements with the Best Match from the Following

question 127

Multiple Choice

Match the following statements with the best match from the following choices. Choice K may be used more than once.
-Optional adjustment election

• A)Cash basis accounts receivable, for example.
• B)Fair market value exceeds 120% of basis.
• C)Inside basis of partnership property can be adjusted to reflect the purchase price paid.
• D)Terminates the partner's interest in the partnership.
• E)Ordinary income-producing items.
• F)Cash, then inventory and unrealized receivables, and then other assets.
• G)Does not eliminate the partner's interest in the partnership.
• H)Changes the partner's or the partnership's ordinary income potential.
• I)Any partnership assets other than cash, capital, or § 1231 assets.
• J)Sometimes treated as an unrealized receivable.
• K)No correct match provided.

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Definitions:

Cost Center

A department or unit within an organization that does not directly add to profit but still incurs costs.

Departmental Contribution To Overhead

The amount of money that each department contributes towards covering the company's indirect costs or overheads.

Profit Center

A segment or division within a company that is responsible for generating its own revenue and profit, tracked separately for performance analysis.

Responsibility Accounting System

A system of accounting that tracks financial performance and costs at the level of individual responsibility centers, encouraging managerial accountability.