An Activity Which Seeks to Earn a Profit by Providing

question 224

Multiple Choice

An activity which seeks to earn a profit by providing a good or service is known as a(n) :

• A)industry.
• B) corporation.
• C)business.
• D)service.

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Definitions:

Sales Returns and Allowances

Reductions in sales revenue for returned goods or for allowances given to customers for defective or unsatisfactory merchandise.

Gross Profit

The difference between the revenue a company earns from selling goods or services and the cost of goods sold.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.

Cash Discount

A deduction from the stated price of goods or services offered to buyers as an incentive for early payment.