All of the Following Are True of Government Markets Except

question 193

Multiple Choice

All of the following are true of government markets except

• A) the government is the largest customer group in all countries.
• B) most government customers buy by specification using a mandatory bidding procedure.
• C) the government buyer must often accept the lowest bid that meets the specifications.
• D) by law, a government unit might have to accept the lowest bid even for an unwanted product.
• E) government purchases are usually subject to much public review.

Distinguish between the cost method and equity method of accounting for investments.

Prepare and interpret consolidated financial statements including non-controlling interests.

Calculate and recognize the acquisition differential in business combinations.

Account for investment acquisition, disposals, and the treatment of goodwill in financial statements.

---

Definitions:

Operating Expenses

Costs associated with running a business's core operations on a daily basis, excluding costs of goods sold.

Merchandising Companies

Companies that purchase goods in a finished condition and sell them without further processing, making profit through the buying and selling of merchandise.

Service Companies

Businesses that provide intangible products or services to customers, as opposed to selling physical goods.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core business activities.