Use This Information to Answer the Following Question

question 87

Multiple Choice

Use this information to answer the following question. Here is the balance sheet for Costello Container Company:

-If the equipment were sold for $13,000,then the Jose Costello,Capital account would

• A)increase by $37,000.
• B)increase by $13,000.
• C)decrease by $13,000.
• D)stay the same.

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Definitions:

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and are responsible for their own revenues and costs.

Decentralized Operations

A management structure where decision-making and operations are distributed among various autonomous units or departments within an organization.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit relative to its revenue or investments over a specific period.

Manager

An individual responsible for controlling or administering an organization or group of staff.