Which of the Following Companies Is Most Likely to Have

question 57

Multiple Choice

Which of the following companies is most likely to have the greatest need for short-term financial planning?

• A)a company that mines sand for use in glass-making
• B)a company that manufactures condiments such as ketchup
• C)a company that produces advertisements for roadside billboards
• D)a company that provides catering services for weddings
• E)a utility company that provides electricity

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Definitions:

Year-End Adjustment

Journal entries made at the end of an accounting period to account for incomes and expenditures in the correct accounting period.

Lower Of Cost

Refers to the accounting principle of valuing and reporting assets at the lower of its historical cost or the market value.

Original Cost

The purchase price of an asset or service, including installation fees, transportation costs, and other expenses required to bring an asset into a usable state.

Investment Account

A financial account held at a financial institution that contains securities, cash, and other assets managed for the purpose of investment.