A Business Purchaser Accepts the Terms of Sale of an Item

question 16

Multiple Choice

A business purchaser accepts the terms of sale of an item that has performed satisfactorily in the past and requires no new information to decide to purchase it again. What kind of buying situation is this an example of?

• A) straight rebuy
• B) service purchase
• C) contract purchase
• D) modified rebuy

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Definitions:

Fire Insurance

Fire insurance is a type of property insurance that covers damage and losses caused by fire, providing compensation to the policyholder.

Supplies Expense

Costs associated with consumable items or supplies used during an accounting period.

Supplies Account

An account used to track the cost of supplies used by a business during an accounting period that are not directly tied to production.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operational efficiency.