Laura DeWolf and Julie Komar Own and Operate a Small

question 70

Multiple Choice

Laura DeWolf and Julie Komar own and operate a small organic bakery.On a weekly basis, they go to their local Costco to purchase some food items and cleaning supplies they need for their business.With the exceptions of the volume they purchase and the items' intended use, this shopping trip is identical to a weekly trip by their families to a grocery store.Costco is serving as a __________ wholesaler for these entrepreneurs.

• A)general-line
• B)specialty-line
• C)full-service merchant
• D)truck
• E)cash-and-carry

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Definitions:

Equity Component

A part of a compound financial instrument that represents a right to equity shares of the issuer, separate from other elements such as a debt component.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.

Statement of Changes

Refers to a financial statement that outlines the changes in equity of a company over a specific period due to transactions with owners and other comprehensive income.

Retained Earnings

The remaining net income for the company after distributing dividends to its shareholders.