Electronic Booksellers Like Amazon

question 44

Multiple Choice

Electronic booksellers like Amazon.com and barnesandnoble.com are likely to enjoy strong sales in the future because books as a product category

• A) are highly standardized.
• B) require audio or video demonstration.
• C) do not require pre-purchase trial.
• D) can be delivered inexpensively through bulk mail.
• E) are purchased mainly on the basis of price.

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Definitions:

Income Taxes Payable

Income taxes payable is a liability account on a company's balance sheet representing the amount of income taxes that the company owes to the government but has not yet paid.

Discount on Bonds Payable

The difference between the face value of a bond and the lower price at which it is sold, representing additional interest expense to the issuer over the bond's life.

Interest Expense

Costs incurred by an entity for borrowed funds, which are recognized on the income statement.

Fixed Asset

Long-term tangible assets, such as machinery and buildings, used in the operation of a business, not expected to be consumed or converted into cash in the short term.