Computer Companies Buying Hardware Components from Component-Makers,assembling Them in Their

question 82

Multiple Choice

Computer companies buying hardware components from component-makers,assembling them in their own facilities,and selling completed systems to consumers and businesses is an example of ________.

• A) telecommuting
• B) franchising
• C) outsourcing
• D) licensing

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Definitions:

Net Income

The remaining profit of a corporation once every expense, tax, and additional cost is deducted from the overall revenue.

Amortization Expense

The gradual write-off of the cost of an intangible asset over its useful life.

Equity-Method

An accounting technique used to record investments in affiliate companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.

Operating Activities

Activities that relate directly to the operation of a business, including sales revenue and expenses, reflected in the cash flow statement.