Six General Product and Service Categories Dominate Online Consumer Buying,accounting

question 153

Multiple Choice

Six general product and service categories dominate online consumer buying,accounting for about 70 percent of online sales.One category includes items like computers,consumer electronics,and books for which

• A) digital delivery is an important factor as well as post-purchase support services.
• B) price and speed of delivery are the determinant sales factors.
• C) convenience is very important, even more so than price or quality.
• D) product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical.
• E) price and delivery time are not key factors, but product warranties are very important.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Generally Accepted Accounting Principles

A set of accounting standards, principles, and procedures that companies use to compile their financial statements.

Liability-Revenue Account Relationship

The connection between liabilities and revenues, typically involving situations where revenue is earned as liabilities are settled.

Unearned Rent Revenue

A liability account representing the advance payment of rent by tenants that has yet to be earned by the property owner.