A Type of Responsibility Center Which Is Typically Established Whenever

question 73

Multiple Choice

A type of responsibility center which is typically established whenever an organizational unit has control over both its resources and its products or services is a(n)

• A) investment center.
• B) revenue center.
• C) expense center.
• D) profit center.
• E) standard cost center.

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Definitions:

Bonds Payable

Long-term liabilities represented by written promises to pay a specific sum of money, plus interest, at a future date.

Accounts Payable

An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors or suppliers.

Taxes Payable

Liabilities due to federal, state, or local tax authorities within the next fiscal year.

Earnings per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of its common stock.