Identify the Firm Below Where Employees' Knowledge Is Likely to Be

question 65

Multiple Choice

Identify the firm below where employees' knowledge is likely to be more valuable than the value of a company's tangible assets.

• A)An international airline company.
• B)A law firm.
• C)An automobile manufacturer.
• D)A grocery store.

---

Definitions:

Net Income

The remaining profit of a company after it has paid all operational expenses and taxes from its revenue.

Credits

Entries on the right side of a double-entry bookkeeping system that increase liabilities, equity, or revenue accounts, or decrease asset or expense accounts.

Double-entry Accounting

An accounting system in which every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.