Dynamic Services, Inc

question 95

Multiple Choice

Dynamic Services, Inc. purchased computers that are to be used in its consulting services. Based on the matching principle, the related account that should appear on the income statement for the year ended December 31, 2018 is ________.

• A) Depreciation Expense - Equipment
• B) Service Revenue
• C) Accumulated Depreciation - Equipment
• D) Equipment Expense

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Definitions:

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.

Covert Collusion

A form of collusion that occurs in secret or is hidden, where competing firms in an industry agree to control prices or market shares without public knowledge.