Suppose You Own a Large Organization and Are Trying to Decide

question 22

Essay

Suppose you own a large organization and are trying to decide if you should outsource your IT department. Explain the positives and negatives of outsourcing and why you would or would not choose to outsource.

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Definitions:

Temporary Account

An account used to accumulate transaction information during a single accounting period, which is then transferred to permanent accounts.

Withdrawals

Amounts of money taken out from a business by the owner(s) for personal use, not considered a business expense.

Fees Earned

Revenue generated from services provided or work completed during a specific period.

Adjusted Trial Balance

A final tally of all financial accounts, after adjustments, used to prepare financial statements, ensuring the total debits equal total credits.