Which of the Following Statements About the Distinction Between Consumer

question 237

Multiple Choice

Which of the following statements about the distinction between consumer goods and B2B goods is the most accurate?

• A) The same product can be classified as either a consumer good or an industrial good, depending upon its end use.
• B) Industrial goods tend to have a useful life of several years and can be depreciated while consumer goods typically last less than a year.
• C) Consumer goods are typically more expensive than industrial goods.
• D) Industrial goods are custom-made to the specifications of the buyer, while the all consumer goods are mass-produced.

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Definitions:

Money Units

A standard unit of measure for accounting transactions, typically representing the currency in which a financial transaction is recorded.

Transactions

Financial activities or events that affect the financial position of a business, such as sales and purchases.

Accounting Equation

The foundational principle in accounting that equates assets with the sum of liabilities and owner's equity: Assets = Liabilities + Equity.

Equity

Equity represents the ownership value held in assets after all liabilities have been subtracted, often referred to as net worth.