The Income Statement of a Service-Sector Firm Reports ________

question 191

Multiple Choice

The income statement of a service-sector firm reports ________.

• A) period costs only
• B) cost of goods sold
• C) both period costs and cost of of goods sold
• D) direct labor costs

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Definitions:

Cash Dividends

Cash distributions from a company to its shareholders, usually derived from earnings.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing insight into the income generated from an investment.

Cash Dividends

Payments made by a corporation to its shareholders, typically from profits, in the form of cash.