Which of the Following Is True of Service Companies

question 71

Multiple Choice

Which of the following is true of service companies?

• A) All costs of service companies are product costs.
• B) Service companies modify and resell products they buy from manufacturers.
• C) Revenues of service companies are only recorded on cash receipt.
• D) Service companies carry no inventories of products for sale.

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Definitions:

Acceptance Terms

Conditions under which an offer can be accepted, forming a binding contract between the offering and accepting parties.

Offer Terms

The specific conditions, including price, duration, and duties, outlined in a proposal to enter into a contract or agreement.

Federal Courthouse

A building housing federal courts where cases related to federal law are tried.

Invitation

A written or verbal request to someone to go somewhere or to do something.