A Significant Difference Between the Provision of Services and Manufacturing

question 70

Multiple Choice

A significant difference between the provision of services and manufacturing occurs because of

• A)inventory.
• B)contact between people.
• C)both a and b
• D)neither a nor b

---

Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, calculated as (Current Assets - Inventory) / Current Liabilities.

Credit Risk

The risk of loss due to a borrower's failure to make payments on any type of debt.

FOB Destination

A shipping term indicating that the seller is responsible for the cost of transporting goods to the buyer's designated location; ownership transfers upon delivery.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.