June Lives in the Southern Part of Alabama Where Winters

question 263

Multiple Choice

June lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented an) :

• A) unsought service.
• B) industrial service.
• C) specialty service.
• D) convenience service.

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Definitions:

Net Income

The total revenue minus total expenses, indicating the profit earned by a business during a specific period.

Operating Activities

Activities related to the primary operations of a business, such as sales, supply chain management, and customer service.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to convert it from accrual to cash basis.

Net Income

The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.