The Direct Costs of Operating a University Computer Centre Would

question 21

Multiple Choice

The direct costs of operating a university computer centre would NOT include

• A)rent paid for computers.
• B)a fair share of university utilities.
• C)paper used by the centre.
• D)computer consultants' salaries.

---

Definitions:

Expense Account

An account that records the costs incurred by a business in the process of earning revenue, part of the company's income statement.

Adjusting Entry

A record added in the books at the closing of an accounting cycle to note any unrecorded earnings or expenditures during that time.

Rent Revenue

Income received from leasing out properties or spaces to tenants.

Liability-Revenue Relationship

The association between a company's liabilities and its ability to generate income, impacting financial performance.