Service Companies Have the Simplest Accounting with Regard to the Income

question 80

True/False

Service companies have the simplest accounting with regard to the income statement.

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Definitions:

Payment Terms

The conditions under which a seller will complete a sale. Typically, these terms specify the period allowed to a buyer to pay off the amount due and may include cash discounts for timely payment.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually calculated as a percentage of the retail sale price.

General Journal

A comprehensive accounting record of all transactions made by a company, presented in chronological order.

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of sale and passed on to the government.