The Service Economy

question 172

Multiple Choice

The service economy

• A) is an increasingly smaller part of the total economy.
• B) uses primarily lower-wage employees.
• C) requires higher-skilled and more-educated employees than the manufacturing sector.
• D) is more important in other countries than in the United States.

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Definitions:

Producing Goods

Producing goods involves the processes and activities of manufacturing or creating products from raw materials for sale.

Noncash Revenues

Revenues earned by a company for which cash has not been received, often recognized through accrual accounting.

Operating Activities

Part of the cash flow statement, these activities relate directly to the trading activities of the business, including the production, sales, and delivery of the company's products and services.

Cash Flows

The net amount of cash being transferred into and out of a business, especially affecting operating, investing, and financing activities.