Some Products Are High on Intangible Components

question 68

Multiple Choice

Some products are high on intangible components. These products are known as _______.

• A)goods
• B)services
• C)merchandise
• D)intangibles

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Definitions:

Voucher System

A control mechanism in accounting where vouchers are used to authorize the disbursement of cash and record financial transactions.

Net Method

A method of recording purchases or invoices at their net price after deducting any purchase discounts.

Invoice Paid

A document or notation indicating that payment has been made for a particular invoice, clearing the amount owed.

Periodic Inventory Method

A method of inventory valuation where the cost of goods sold is determined at the end of an accounting period based on a physical count.