Brian Is Trying to Sell a New Line of Ultrasound

question 86

Multiple Choice

Brian is trying to sell a new line of ultrasound imaging equipment.Unlike existing technology,these machines are compact,creating the potential for general practice physicians to have and use them in their offices.Brian is trying to identify innovators in his market,knowing these customers will most likely

• A) spread positive word of mouth to other physicians.
• B) buy one for each office in their practices.
• C) reposition his products.
• D) create demand among the late majority.
• E) not need any service or support when using the product.

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Definitions:

Indirect Method

A way of preparing the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Accounts Receivable

Outstanding payments from customers for goods or services rendered by a company which have not been settled yet.

Direct Method

A way of preparing the cash flow statement where actual cash inflows and outflows from operating activities are reported, as opposed to the indirect method.