When Service Providers State That Services Are Produced and Consumed

question 112

Multiple Choice

When service providers state that services are produced and consumed at the same time, they are referring to the fact that services are:

• A)inconsistent.
• B)intangible.
• C)inseparable.
• D)standardized.
• E)perishable.

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, used in double-entry bookkeeping.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Decrease

A reduction in the size, amount, or rate of something.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered or used but not yet paid for, typically recorded as an asset on the balance sheet.