Dynamic Services Company Purchased Computers That Are to Be Used

question 5

Multiple Choice

Dynamic Services Company 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:

Internal Price Wars

Competition within an organization or market where divisions or products compete against each other on pricing, potentially eroding overall profitability.

Divisional Income

The earnings generated by a specific division or segment of a company, highlighting its financial performance.

Service Department Expenses

Expenses incurred by the support departments within a company that do not directly contribute to the production of goods or services but are necessary for operation.

Net Income

The amount of profit left over after all expenses and taxes have been subtracted from total revenue.