Which One of the Following Is a Distinguishing Characteristic of an Investment

question 6

Multiple Choice

Which one of the following is a distinguishing characteristic of an investment centre?

• A)It includes significant uncontrollable fixed costs.
• B)Performance can be evaluated with both profitability and return on utilizing assets.
• C)This type of responsibility centre only generates revenues.
• D)Revenues are rarely generated by selling products.

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but for which payment has not yet been received.

Credit

An accounting entry that increases the balance of liabilities and equity accounts, and decreases the balance of assets accounts. It is also the provision of resources (such as money) by one party to another with the expectation of repayment.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or officially recorded.

Maturity Date

The date on which a financial instrument, such as a bond or loan, is due to be repaid in full.