The Fresh Food Section of a Local Grocery Store Reporting

question 69

Multiple Choice

The fresh food section of a local grocery store reporting operating income for the current year would be a(n) :

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

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; represents the ownership interest of shareholders.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Transactions

The actions carried out between two parties that result in the exchange of goods, services, or financial assets.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were subsequently repurchased by the company and are held in its treasury.