Which of the Following Is True About a Difference Between

question 13

Multiple Choice

Which of the following is true about a difference between supplies and business services?

• A) Supplies are consumable items,whereas business services are expense items.
• B) Supplies are immoderate compared to other business goods,whereas business services are economical.
• C) Supplies are part of a final product,whereas business services do not become part of a final product.
• D) Supplies are custom designed for each customer,whereas business services are normally standardized.

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Definitions:

Physical Count

A manual counting process of inventory items in a business, used to verify the quantities of goods on hand and ensure the accuracy of accounting records.

Periodic Inventory System

An accounting method where inventory and cost of goods sold are determined at set intervals, such as monthly or annually.

Perpetual Inventory System

An inventory accounting approach that instantly documents inventory purchases or sales using computerized point-of-sale systems and enterprise asset management software.

Inventory Ledger

A record that keeps track of the detailed inventory transactions of a business, including purchases, sales, returns, and write-offs.