Harvard Financial Services Purchased Computers That Are to Be Used

question 114

Multiple Choice

Harvard Financial Services purchased computers that are to be used in its consultancy services.Based on the matching principle,what account,other than Computers,should appear on the balance sheet as of December 31,2016?

• A)Depreciation Expense
• B)Service Revenue
• C)Accumulated Depreciation
• D)Equipment Expense

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Definitions:

Vertical Relationships

Business arrangements or interactions between companies at different levels of the supply chain, such as manufacturers and retailers.

Vertical Relationships

Vertical relationships refer to the connections between companies or entities at different stages of the production process, such as suppliers, manufacturers, and retailers.

Double-Markup Problem

Refers to the inflation of prices that occurs when each intermediary in a supply chain adds its own markup.

Incentives

Rewards or motivations offered to encourage specific behaviors or actions by individuals or organizations.