SkyJet Airways Has Three Divisions,the Western Division,the Eastern Division,and the Northern

question 78

Multiple Choice

SkyJet Airways has three divisions,the Western Division,the Eastern Division,and the Northern Division.The manager of the Western Division had wanted to purchase replacement airplanes for the division.However,he decided against it because,although revenues would increase and the new planes would be less expensive to operate,the initial cost of the planes was quite large.What centre is most probably used to account for the Western Division?

• A)a cost centre
• B)an investment centre
• C)a profit centre
• D)a revenue centre

Understand the role and ordering of various types of accounts in the general ledger.

Grasp the purpose and process of posting transactions from the journal to the ledger.

Learn the guidelines for choosing account names for the chart of accounts.

Recognize the classification of accounts such as assets, liabilities, revenues, and expenses.

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Definitions:

Mutually Exclusive

Situations or events that cannot occur at the same time, often referring to investment choices or project decisions in finance.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to assess its viability.

Average Accounting Return

The average accounting return is a financial ratio that measures the profitability of an investment as the average net income the investment generates divided by the book value of the investment's initial cost.

Straight Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.