​Managers of Profit Centers Are Usually Given a Lot of Discretion

question 101

Multiple Choice

​Managers of profit centers are usually given a lot of discretion because

• A)​They always do an excellent job
• B)They rarely do a good job
• C)The company can never judge their performance
• D)​It is relatively easy to tie management pay to division performance

Calculate net income by analyzing changes in assets, liabilities, and equity.

Prepare and analyze trial balances and identify errors.

Understand the impact of business transactions on the financial statements.

Identify account types and their normal balances.

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Definitions:

Monthly Basis

Refers to events, measurements, or calculations that occur or are determined every month.

Ledger Account

A record that summarizes all the transactions related to a particular item or individual in the accounting system, facilitating the preparation of financial statements.

Service Revenue

Revenue generated from the provision of services to customers.

Accounts Receivable

Accounts Receivable refers to the money owed to a company by its customers for products or services delivered or used but not yet paid for.