Which of the Following Is a Difference Between Component Parts

question 40

Multiple Choice

Which of the following is a difference between component parts and supplies?

• A)Component parts require extensive processing before they become part of another product, whereas supplies do not.
• B)Component parts are consumable items, whereas supplies are finished items.
• C)Component parts become part of a final product, whereas supplies do not.
• D)Component parts are inexpensive when compared to other business products, whereas supplies are expensive.

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Definitions:

Horizontal Analysis

Also known as trend analysis, it compares financial statements line items over several periods to identify changes and trends.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Statement Of Income

A financial statement that shows a company’s revenues, expenses, and profit or loss over a specific time period, often quarterly or annually.

Continuing Operations

Activities and processes that are not scheduled to be discontinued or sold off, representing the ongoing, primary business activities of an entity.