Which Statement Best Describes Long-Term Customers

question 111

Multiple Choice

Which statement best describes long-term customers?

• A) They are less valuable to a company than short-term customers.
• B) They are more difficult to deal with than short-term customers.
• C) They are expensive investments because the upkeep is costly.
• D) They are more valuable assets than new ones.

---

Definitions:

Admission

The process or fee associated with being allowed entry into a place, organization, or institution.

Interest Allowance

An amount that reduces the gross interest income earned, related to the cost of borrowing or credit facilities.

Income Summary

An account used in the closing process during accounting that accumulates revenues and expenses to determine net income or loss.

Net Loss

The amount by which total expenses exceed total revenues for a business during a specific period, indicating a reduction in equity.