Pentathlon Ltd

question 97

Multiple Choice

Pentathlon Ltd. and New Image Fitness both specialize in designing bikes for triathletes in the North American market. Thus, each company would see the other as a

• A)supplier.
• B)competitor.
• C)distributor.
• D)customer.

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Definitions:

Income Statement

A financial report showing the company’s revenues, expenses, and profits over a specific period of time.

Administrative Expense

Costs related to the general operation of a business that are not directly tied to producing goods or services, such as salaries of office staff and utilities.

Other Expense

Expenses that cannot be traced directly to operations.

Unusual Item

An uncommon or rare event that affects a company's financial statements, not expected to recur frequently.