Which of the Following Statements Is True of the North

question 43

Multiple Choice

Which of the following statements is true of the North American Industry Classification System (NAICS) ?

• A)​Each classification group in NAICS is heterogeneous in terms of the components used.
• B)The geographic dispersion of firms cannot be identified with the help of NAICS.
• C)The more the digits in a NAICS code, the more homogeneous the group.
• D)​Goods- or service-producing firms grouped under NAICS use different production processes.

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Definitions:

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Activities that relate directly to the business's primary operations and functions, including sales, distribution, and production, influencing the day-to-day profitability.

Cash Receipts

The collection of money, including cash and checks, received by a business during a specific period.

Plant Assets

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.