In a Profit Center, the Manager Has Responsibility and Authority

question 185

Multiple Choice

In a profit center, the manager has responsibility and authority for making decisions that affect

• A) long-term liabilities
• B) assets
• C) investments
• D) costs

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Definitions:

Direct Write-off Method

The Direct Write-off Method is an accounting approach where uncollectible debts are charged directly to expense as they are identified, without creating an allowance for doubtful accounts.

Collection Bureau

An agency that pursues payments of debts owed by individuals or businesses, typically for a fee or percentage of the collected debt.

Customer Account

An account held by a business that details the transactions and financial relationship between the business and a specific customer.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible debts.