The Foreign Subsidiary of a Large Corporation Is

question 34

Multiple Choice

The foreign subsidiary of a large corporation is

• A) not a responsibility center.
• B) a profit center.
• C) a cost center.
• D) an investment center.

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Definitions:

Drawing Account

A specific account used to record amounts withdrawn by the owner(s) of a business for personal use.

Withdrawals

Amounts taken from a business by its owner(s) for personal use.

Expenses

Costs incurred by a business in the process of earning revenue.

Consuming Services

Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.