Which of the Following Is Considered a Final Good or Service

question 42

Multiple Choice

Which of the following is considered a final good or service?

• A) An airline ticket purchased to go on a business trip
• B) The flour used by a baker to make bread
• C) The bread purchased by a sub shop to make sandwiches
• D) The steel used to make a car

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Definitions:

Collection Period

The amount of time it takes for a business to receive payments owed by its customers.

Cash Disbursements

Financial payments made by a business, including expenses, creditor payments, and inventory purchases.

Seasonal Merchandise

Products that are particularly popular or in demand during specific seasons or periods of the year.

Maturity Hedging

A financial strategy used to manage the risk associated with the timing of cash flows, particularly the mismatch between asset maturities and liability maturities.