What Was the Balance in Thurman's Capital Account at the End

question 49

Multiple Choice

What was the balance in Thurman's Capital account at the end of the second year?

• A) $133,380.
• B) $ 84,760.
• C) $105,690.
• D) $132,860.
• E) $ 71,760.

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Definitions:

Responsibility Accounting

An accounting system that measures the results of each responsibility center, allowing for more effective planning and control within an organization.

Responsibility Reporting

An accounting system that collects, summarizes, and reports financial information about different responsibility centers within an organization.

Investment Centers

Divisions or units within a company for which the manager has responsibility over costs, revenues, and investments.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.