Which of the Following Is the Best Example of a Service

question 86

Multiple Choice

Which of the following is the best example of a service performed by sellers and others that accompanies the sale of a product and that aids in its exchange or its utilization?

• A) A bank loan
• B) Home security
• C) Airlines
• D) Financing an automobile

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Definitions:

GAAP

Generally Accepted Accounting Principles; the common set of accounting standards and procedures used in the U.S. to compile financial statements.

Revenue Recognition

A principle within accounting that determines the specific conditions under which revenue is recognized or accounted for.

Overtime Wages

Additional pay granted to employees for hours worked beyond their standard scheduled hours.

Expensed

Recorded as an expense in the financial statements in the period in which it is incurred.