The Transfer of Activities Once Performed by One Organization to Another

question 53

True/False

The transfer of activities once performed by one organization to another organization in exchange for money is known as outsourcing.

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Definitions:

Service Revenue

Income earned from the provision of services as opposed to the sale of physical goods.

Cash Received

Money that has been transferred into a company or individual's possession as payment for goods or services.

Cash Deposit

Funds placed in a financial institution for safekeeping, which can include cash or cash equivalents.

Liability Reported

The representation of an entity's obligations or debts on its financial statements, indicating amounts owed to creditors.