Which Is TRUE About Services

question 92

Multiple Choice

Which is TRUE about services?

• A)Some services may require that a sequence of uniform processes be performed.
• B)Services can never be homogeneous and repetitively produced.
• C)Services cannot have work-in-process inventories.
• D)All services require job-order costing.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is usually increased, reflecting its normal financial balance.

Financial Statement

A certified summary of all financial dealings and the fiscal posture of a business entity, a private individual, or any other party.

Contra-Asset Accounts

Accounts on a balance sheet that have a balance opposite to the normal balance of an associated account, used to lower the value of the associated assets (e.g., accumulated depreciation).

Sales Discounts

A reduction in the price of goods or services sold, offered by the seller as an incentive to buyers.