Cost Centers Profit Centers and Investment Centers Can All Be

question 43

True/False

Cost centers profit centers and investment centers can all be classified as responsibility centers.

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Definitions:

Decreases

A reduction in quantity, size, or overall value of an asset, revenue, or other financial metric.

Decreases in Current Assets

The reduction in the value or amount of the assets that a company expects to convert into cash within one year.

Decreases in Current Assets

Reductions in the assets that a company expects to convert into cash, sell, or consume within one year or the operating cycle, whichever is longer.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find net cash provided by operating activities.