________ Is an Accounting Method in Which Revenue Is Recorded

question 30

Multiple Choice

________ is an accounting method in which revenue is recorded when payment is received and expense is recorded when money is paid.

• A) Accrual basis
• B) Profit basis
• C) Cash basis
• D) Depreciation
• E) Deferral basis

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Definitions:

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.

Profit Center

A responsibility center that incurs costs and also generates revenues.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a certain period, often used in evaluating the performance of investment centers.

Controllable Margin

A financial metric used to assess the amount of profit that can be controlled or influenced by managerial decisions.