The Use of Brand Names Is Especially Important for Services

question 71

Multiple Choice

The use of brand names is especially important for services because of which unique characteristic of services?

• A) inventory costs
• B) inseparability
• C) inconsistency
• D) invisibility
• E) intangibility

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Definitions:

Income Statement Accounts

Income statement accounts include all the revenue and expense accounts that determine a company's net income or net loss for a specific period.

Balance Sheet Accounts

Accounts that appear on the balance sheet, such as assets, liabilities, and shareholders' equity, reflecting the financial position at a specific point in time.

Adjusting Entries

At the close of an accounting period, entries in accounting records to apportion income and outlays to the actual time they happened.

Prepaid Rent

An expense that represents payment made in advance for the use of property or space, which is recorded as an asset until it is consumed or the rental period elapses.