Joe Owns a Construction Company and Prices His Services Based

question 71

Multiple Choice

Joe owns a construction company and prices his services based on labor hours and the cost of material.Which of the following revenue models is Joe using?

• A)data revenue model
• B)utility and usage revenue model
• C)professional revenue model
• D)franchising revenue model

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Definitions:

Trading Securities

Financial securities that are purchased by a company not for long-term investment but rather for the purpose of selling them in the short term to generate profit.

Fair Value

Fair value is an estimate of the market value of an asset or liability, based on current prices in an active market or through valuation techniques.

Financial Statements

Reports that provide detailed information on a company's financial performance, including balance sheet, income statement, and cash flow statement.

Fair Value Method

An accounting approach used to assess and assign a value to assets or liabilities based on current market prices or the estimated prices of similar transactions.