Select the Term from Below to Match with the Correct

question 59

Multiple Choice

Select the term from below to match with the correct statement.
-A(n) ___________ is a responsibility center in which a manager is responsible only for costs.

• A)centralization
• B)revenue center
• C)profit center
• D)cost center
• E)investment center
• F)decentralization

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Definitions:

IFRS

Stands for International Financial Reporting Standards, which are a set of accounting rules used by companies to maintain their financial statements globally, fostering transparency and comparability.

Direct Method

A cash flow statement preparation approach that separately lists major classes of gross cash receipts and payments.

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to compute net cash from operating activities.

Prepaid Rent Expense

An advance payment for rent that is recorded as an asset until the period to which it relates passes.