Which of the Following Statements Describe Secondary Internal Data

question 24

Multiple Choice

Which of the following statements describe secondary internal data?

• A) A manufacturer of semiconductors uses available company sales and inventory valuation records to prepare an inventory turnover ratio for each month.
• B) A mail order company conducts a telephone survey among recent purchasers.
• C) A presidential candidate commissions a political survey organization to establish the percent of persons favoring her candidacy.
• D) A recent graduate of mortuary school samples the death rate statistics for counties in her state in hopes of finding a good location to start a mortuary.
• E) Consumers Union purchases 25 brands of lawnmowers and tests them for various attributes.

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Definitions:

Investing Activities

This section of the cash flow statement details transactions involving the purchase and sale of long-term investments and property, plant, and equipment.

Long-Term Note

A debt obligation that extends for a period beyond one year, often used for significant investments or purchases.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets. It's an important measure of financial health.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve long-term operations.