The Bank Notifies the Company of Fees for the Month

question 7

Multiple Choice

The bank notifies the company of fees for the month already taken out of the company's bank account. The CR entry would be:

• A) CR Accounts payable
• B) CR Expenses payable
• C) CR Cash
• D) CR Bank charges

---

Definitions:

Target Return

A financial goal set for the profit or outcome from an investment or business activity.

Average Invested Capital

The mean amount of money invested in a company or project over a certain period, used to compute return on investment.

Target Profit

The projected profit a firm aims to achieve within a specific period, guiding pricing and production decisions.

Full Cost

The total cost of production, encompassing direct and indirect costs.