SMERF Groups

question 11

Multiple Choice

SMERF groups:

• A)are able to hold meetings only during peak times
• B)are run by salaried professionals
• C)must hold annual meetings to maintain their membership status
• D)are generally price conscious since the individuals must pay their own way

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Definitions:

Service Revenue

Income earned by a company for services rendered to clients or customers.

Unearned Service Revenue

Refers to the money received by a company for services it has yet to render.

Temporary Accounts

Accounts that track transactions within a fiscal period and are reset to zero at the start of the next period, including revenues, expenses, and dividends.

Owner's Drawings

Withdrawals of a company's earnings by the owner for personal use, affecting the owner’s equity account in a separately held business.