Public Utilities

question 97

Multiple Choice

Public utilities

• A)are primarily regulated natural monopolies.
• B)are competitive firms.
• C)experience only insignificant economies of scale in production.
• D)are seldom regulateD.

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Definitions:

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company during a specific period.

Sales Returns & Allowances

Transactions where sellers accept returned goods from buyers, or provide a price reduction or discount, reducing the initial sales revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Perpetual Inventory Method

An inventory accounting method where updates to the inventory records are made immediately following each sale or purchase.