Which of the Following Statements Is False

question 78

Multiple Choice

Which of the following statements is false?

• A) Firms in the service sector typically change prices less frequently then manufacturing firms.
• B) Most retailers in Western Europe and the United States change prices more than five times a year.
• C) Wholesale prices are changed more often than retail prices.
• D) Firms are more likely to change prices due to shocks to its respective sector as opposed to shocks to the aggregate economy.

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Definitions:

Adjustment

An entry made in accounting records to correct or allocate transactions properly.

Service Company

A service company is a business that earns revenue through the provision of services, as opposed to selling physical products.

Merchandise Company

A business that purchases and sells goods, often retail or wholesale, as its primary activity.

Form 1120S

A tax document used in the United States to report the earnings, losses, and dividends of S corporation shareholders.