Which of the Following Companies Is a Pure Service Firm

question 154

Multiple Choice

Which of the following companies is a pure service firm?

• A) Walmart
• B) Microsoft
• C) Starbucks
• D) Royal Bank of Canada

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Short-Term Investments

Assets that are expected to be converted into cash or sold within one year or the operating cycle, whichever is longer.

Internal Auditors

Professional auditors who are employed by an organization to perform auditing and analysis of its operations, systems, and financial activities, ensuring compliance and identifying improvements.

Internal Control Elements

Components of a framework designed to safeguard assets, ensure financial reporting accuracy, promote operational efficiency, and encourage adherence to policies.