Primary Activities _________ Add Value Directly to the Firm's Products

question 5

Multiple Choice

Primary activities _________ add value directly to the firm's products or services; support activities _________ add value directly to the firm's products or services.

• A) do; do
• B) do; do not
• C) do not; do
• D) do not; do not

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Definitions:

Trade Receivables

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Dishonored Note

A promissory note that has not been paid by its maker or endorser at the time of maturity.

Selling Receivables

The process of selling a company's accounts receivable to a third party to improve liquidity and reduce the risk of uncollectible debts.

Voucher System

A control mechanism in accounting that requires all company expenditures to be documented with vouchers, supporting the authenticity of transactions.