The Kind of Responsibility Center That Would Be Evaluated by Comparing

question 38

Multiple Choice

The kind of responsibility center that would be evaluated by comparing income on assets to the amount of assets invested is:

• A) An investment center.
• B) An asset center.
• C) A cost center.
• D) A profit center.

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Definitions:

Compounded

The process of accumulating interest on an investment or loan where the earned interest is added to the principal, leading to interest being earned on interest.

Annually

Occurring once every year, often used in the context of events, payments, or calculations that repeat on a yearly basis.

RRSP

Registered Retirement Savings Plan, a retirement savings and investment vehicle for employees and the self-employed in Canada, offering tax benefits.

Twentieth Year

Referring to the twentieth year in a sequence or duration, often used in the context of anniversaries or timelines.