Which of the Following Terms Refers to the Profits That

question 58

Multiple Choice

Which of the following terms refers to the profits that are available to be used to satisfy the preferences of the owner in how the business is run?

• A) Slack resources
• B) Liability of newness
• C) Takeoff
• D) Depreciated assets

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Definitions:

Return On Investment

A measure of the profitability of an investment, calculating the ratio of net profit to the initial cost of investment.

Dividing

In financial contexts, this can refer to allocating or apportioning financial resources or profits among groups, such as dividends to shareholders.

Responsibility Accounting

A financial tracking system that gathers, compiles, and presents financial data relevant to the duties of specific managers.

Controllable Costs

Expenses that can be directly influenced or managed by a specific department or level of management.