The Following Information Is Taken from the Accounts of Spratt

question 46

Multiple Choice

The following information is taken from the accounts of Spratt Ltd.
-What was the accumulated depreciation on plant sold during the year?

• A) $32 000
• B) $42 000
• C) $52 000
• D) $40 000

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Definitions:

Profit Center

A segment or branch of a company that is directly responsible for generating profit through its operations and is evaluated on its profitability.

Cost Center

A business unit that incurs costs but does not directly generate revenues, often evaluated for efficiency and cost control.

Cost Center

A division or unit within an organization that does not directly add to profit but still incurs costs, often analyzed for budgeting and cost control.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.