Operating Expenses Are Similar in Merchandising and Service Companies

question 69

True/False

Operating expenses are similar in merchandising and service companies.

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Definitions:

Consuming Goods

The action of using up goods or products, thereby reducing inventory.

Generating Revenues

The process by which a company earns income through the sale of goods or services.

Expenses

Outflows or using up of assets, or incurring liabilities, as a result of operational activities intended to generate revenue.

Financial Statement

A summary report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.