Before Moving Out of Their Apartment, Kelly and Doug Decided

question 86

Multiple Choice

Before moving out of their apartment, Kelly and Doug decided to have their carpets cleaned by Stanley Steemer, a company specializing in professional carpet cleaning. The carpet cleaners arrived on time, cleaned the carpets, and drove away in their bright yellow van. Only then did the couple see that they did a good job. Kelly and Doug were unable to judge the service before they bought it, which illustrates the ________ of services.

• A) inconsistency
• B) inseparability
• C) inventory costs
• D) intangibility
• E) interdependence

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specified period of time, indicating its financial performance.

Balance Sheet

An illustrative financial document that covers a company's assets, liabilities, and the equity interest of shareholders on a given date.

Statement of Stockholder's Equity

A financial statement that shows the changes in the value of a company's equity over a reporting period.

Balance Sheet

A detailed statement reflecting a company's tangible assets, owed liabilities, and shareholder equity at a particular time.