Which of the Following Business Activities Represents a Service-Flow Business

question 20

Multiple Choice

Which of the following business activities represents a service-flow business?

• A)farming
• B)leasing and servicing copy machines
• C)selling gasoline
• D)extracting natural gas
• E)selling electric bicycles

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Definitions:

Ledger Adjustments

Entries made in the general ledger to correct errors, update account balances, or reallocate funds across accounts.

Multiple-Step Income Statement

An income statement format that separates operating activities from non-operating activities, distinguishing between sales and expenses directly related to the business's primary operations and other sources or uses of income.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to track financial transactions and prepare financial statements.

Interest Expense

The cost incurred by an entity for borrowed funds, considered as a non-operating expense on the income statement.