Which of the Following Statements Is True

question 143

Multiple Choice

Which of the following statements is true?

• A)The revenue activities of a service business involve providing services to customers.
• B)The revenue activities of a merchandising business involve the building of a product.
• C)The revenue activities of a service business involve the building of a product.
• D)The revenue activities of a merchandising business involve providing services to customers.

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Definitions:

Replacement Cost

Replacement cost is the current cost of replacing an asset with a new one of similar kind and quality, often used in determining insurance coverage amounts.

LIFO Layers

In inventory accounting, sections of inventory purchased at different times (and potentially at different costs) under the Last-In, First-Out method.

Inventory Group Basis

An inventory accounting method that aggregates groups or categories of inventory for valuation purposes, rather than valuing items individually.

LIFO Method

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first to be sold.