Match Each Definition That Follows with the Term (A-E) It

question 191

Multiple Choice

Match each definition that follows with the term (a-e) it defines.
-Earned by profit centers

• A)Controllable revenues
• B)Profit margin
• C)Investment turnover
• D)Return on investment
• E)Residual income

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Definitions:

Notes Receivable

Financial assets representing rights to receive payments of principal and interest from debtors under terms specified in promissory notes.

Interest

The cost of borrowing money or the return on investment for savings and investments, often expressed as a percentage.

Adjusting Entry

An amendment added to the accounting records to accurately reflect the revenues earned and expenses incurred during a period.

Interest Note

A legal document that outlines the terms under which interest will be paid on borrowed funds.