Removing a Product After Existing Stock Has Been Depleted; Used

question 29

Multiple Choice

Removing a product after existing stock has been depleted; used when sales for an item are low and costs exceed revenues, such as the case of a restaurant serving a crabmeat cocktail with sales of only one or two items per week.

• A) Phase out
• B) Run out
• C) Exit phase
• D) Maturity

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Definitions:

Bonds

Long-term debt instruments issued by corporations or governments to raise capital, with the issuer promising to pay back the principal along with interest on specified dates.

Annual Interest Payment

the amount of money paid in interest to lenders or bondholders over the course of a year.

Accounting Period

A specific period of time covered by financial statements, usually a fiscal quarter or year.

Journal Entry Grid

A tool used in accounting to visually organize and record the debits and credits of transactions.