A Company That Produces Business Telephones Does an Audit of Customer

question 31

Multiple Choice

A company that produces business telephones does an audit of customer complaints. The results reveal that the customer support department has the biggest share of complaints. This represents a ________ defect.

• A)product
• B)manufacturing
• C)service
• D)distribution
• E)supply

---

Definitions:

Permanent Account

A permanent account is an account that is not closed at the end of the accounting period and carries its balance over into the next period, such as assets, liabilities, and equity accounts.

Closing Entries

Entries recorded at the close of an accounting period for the purpose of moving balances from temporary to permanent accounts.

Capital Account

An account showing the net worth of a business at a specific point in time, including assets contributed by owners and profits.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.