Which of the Following Statements Is True About a Retail

question 80

Multiple Choice

Which of the following statements is true about a retail business?

• A) The operating cycle for a service business differs from the operating cycle for a retail business in that a service business must purchase merchandise for sale to customers.
• B) The revenue activities of a retail business involve the buying and selling of merchandise.
• C) The operating cycles of retail businesses and service businesses are exactly the same.
• D) The revenue activities of a retail business involve rendering services to customers.

---

Definitions:

Effective Rate

The actual interest rate that a borrower pays on a loan or receives on an investment, taking into account the compounding of interest.

Interest

Interest is the cost of using someone else's money or the return on invested capital, typically expressed as an annual percentage rate.

Lenders

Individuals or institutions that provide funds to borrowers under the condition of receiving back the principal amount plus interest.

Income Shares

A method often used in family law to determine the amount of child support payments based on the proportional income of each parent.