Which of the Following Is an Accurate Statement About Providing

question 61

Multiple Choice

Which of the following is an accurate statement about providing a service?

• A)Services in general are less labor intensive than manufacturing.
• B)It is relatively difficult to measure productivity in services.
• C)Services produce a tangible output.
• D)Manufacturing has more customer contact than services.
• E)Services are easily inventoried.

Identify examples of cash flows from investing and financing activities.

Understand the adjustments made to net income in computing cash flows from operating activities using the indirect method.

Recognize transactions that do not affect cash and how they are reported.

Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.

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Definitions:

Successful-efforts Method

An accounting method used in the energy industry for recognizing and capitalizing only those expenses associated with successfully locating new oil or natural gas reserves.

Full-cost Method

A method of accounting for all expenditures associated with the exploration and development of oil and gas reserves as capitalized costs, which are then amortized over the total volume of proven resources.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is globally accepted for financial reporting.

Operating Asset

An Operating Asset is an asset used by a company in its day-to-day operations to generate revenue, such as machinery, buildings, or equipment.