Which of the Following Is Not a Correct Match

question 186

Multiple Choice

Which of the following is not a correct match?
1) Incurs costs
2) Generates revenue
3) Controls investment funds

• A) Investment Center 1 2 3
• B) Cost Center 1
• C) Profit Center 1 2 3
• D) All are correct matches.

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Definitions:

Merchandise Purchases

Transactions where a business acquires goods to be sold later, often at a profit.

Retained Earnings

Accumulated net income not distributed to shareholders and reinvested in the company.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made periodically, usually at the end of a financial reporting period, as opposed to continuously.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead expenses.