When Ruth Arrived at the Cedartown Spa, She Was Given

question 26

Multiple Choice

When Ruth arrived at the Cedartown Spa, she was given a membership card and access to the entire health club's facility. She still enjoys using the exercise equipment at the spa and participating in its exercise classes even though she hasn't lost any weight since she joined. Which of the following statements about the relationship of Ruth and her club is true?

• A) The card gives Ruth tangible proof that she belongs there and shows that the service is being produced and consumed each time she uses it to get in to the exercise room.
• B) Ruth will stop going to the spa because it has not provided her with any tangible evidence of its service.
• C) The services the spa provides to Ruth are an example of purely intangible services.
• D) Weight loss is the intangible evidence of services being provided by the spa.

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Definitions:

Fraudulent Activity

Intentional deceit or trickery used to gain some unfair or dishonest advantage, often involving financial transactions.

Journalizing

The process of recording business transactions in the accounting journals as part of the accounting cycle.

Ledger

A ledger is a comprehensive collection of accounts where financial transactions are categorized and recorded in a double-entry bookkeeping system.

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.