When Classifying a Product as a Consumer Product or a B2B

question 196

True/False

When classifying a product as a consumer product or a B2B product, the primary factor to consider is the financial status of the buyer.

---

Definitions:

Expense

Costs incurred in the process of earning revenue, typically including cost of goods sold, selling, general, and administrative expenses.

Cash Account

An account that records all transactions involving cash receipts and cash payments, including operating, investing, and financing activities.

T Account

A graphical representation used in double-entry bookkeeping to show the increases and decreases in an account, characterized by a T shape.

Account Title

An account title is the name given to an account in the general ledger that identifies where transactions are recorded, such as "Revenue," "Accounts Payable," or "Cash."