There Are Two Components to Product/service Feasibility Analysis: Product/service Desirability

question 9

True/False

There are two components to product/service feasibility analysis: product/service desirability and total startup funds needed.

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Definitions:

Revenue Recognition Principle

A fundamental accounting principle that dictates when revenue should be recognized in the financial statements, typically when it is earned and realizable.

Prepaid Expenses

Funds disbursed before receiving goods or services, documented as assets until they are utilized or consumed.

Expense Recognition Principle

An accounting principle that matches expenses with revenues in the period in which they're incurred to produce those revenues.

Service

The action of helping or doing work for someone, often refers to non-tangible products offered by businesses.