(CMA) Responsibility Accounting Defines an Operating Center That Is Responsible

question 87

Multiple Choice

(CMA) Responsibility accounting defines an operating center that is responsible for revenue and costs as a(n)

• A) Profit center
• B) Revenue center
• C) Division
• D) Investment center

---

Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity over a period of time.

Permanent/Temporary

Categories of accounts in accounting where permanent accounts appear on the balance sheet and temporary accounts are closed at year's end, affecting income summary.

Normal Balance

The side (debit or credit) of an account that is increased, indicating the typical balance of that account in accordance with the double-entry bookkeeping system.

Financial Statement

Summarized reports that convey the financial status, performance, and cash flows of a business or individual over a specific period.