Which of the Following Is Not a Measure That Management

question 116

Multiple Choice

Which of the following is not a measure that management can use in evaluating and controlling investment center performance?

• A) return on investment
• B) negotiated price
• C) residual income
• D) income from operations

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Definitions:

End-Of-Period Spreadsheet

A tool used in accounting to compile all balances and adjustments of an accounting period before preparing the final financial statements.

Retained Earnings

The portion of net income that is held by a company and not distributed to shareholders as dividends, used for investment or debt repayment.

Revenues

The complete earnings derived from transactions involving goods or services that are fundamental to an organization's core functions.

Expenses

Outflows or the using up of assets or incurrence of liabilities from a company's activities intended to generate revenue.