Accounting Terminology Listed Below Are Seven Technical Accounting Terms Introduced or Emphasized

question 61

Essay

Accounting terminology
Listed below are seven technical accounting terms introduced or emphasized in this chapter: Each of the following statements may (or may not)describe one of these technical terms.In the space provided beside each statement,indicate the accounting term described,or answer "None" if the statement does not correctly describe any of the terms.
____ (a)Costs that jointly benefit several responsibility centers of the business and that do not vary significantly with changes in sales volume.
____ (b)The amount charged by a responsibility center for the goods it sells to another responsibility center.
____ (c)Used to evaluate the performance of a manager based solely on revenue and costs under the manager's control.
____ (d)A responsibility center of a business that may be evaluated by the return earned on assets.
____ (e)The subtotal in a responsibility income statement that is most useful in evaluating the short-term effects of various marketing strategies on profitability.

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Definitions:

Accountant

A professional who manages, audits, and analyzes financial records and transactions for individuals, businesses, and organizations.

Ledger

A-book or digital record that summarizes and categorizes all financial transactions of a business during an accounting period.

Normal Debit Balance

The expected balance type of an account based on conventional accounting rules; assets and expenses usually have a normal debit balance.

Company's Records

Documentation and books kept by a company containing important information such as financial transactions, contracts, and employee records.