Nora Kelly,one of the Managers of a Multi-National Company,is Responsible

question 232

Multiple Choice

Nora Kelly,one of the managers of a multi-national company,is responsible for generating revenues and controlling costs in order to increase the operating income of her division.However,she is not concerned about investment-related decisions.Nora is most likely to be the manager of a(n) ________.

• A) cost center
• B) investment center
• C) profit center
• D) revenue center

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the accounts for the next period.

Owner's Equity Statement

A financial statement that shows the changes in the equity of a company's owner(s) over a period of time.

Net Income

The amount of money that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Adjusted Trial Balance

A statement that lists all accounts and their balances after adjustments have been made, serving as the basis for preparing financial statements.