Why Do Companies Use Strategic Group Models

question 95

Multiple Choice

Why do companies use strategic group models?

• A) to reveal product differences between firms in the same industry
• B) to reveal potential areas of industry convergence between firms in different industries
• C) to reveal common threads between firms in different industries
• D) to reveal performance differences between clusters of firms in the same industry

---

Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recognized as assets until used.

Adjusting Entry

A financial record created at the close of an accounting period to assign earnings and expenses to the time they truly took place.

Interest Receivable

This represents the amount of interest income that has been earned but not yet received in cash by the company.