An Inventory Item Can Be

question 37

Multiple Choice

An inventory item can be

• A)Only a parent
• B)Only a component
• C)Both a parent and a component
• D)Either a parent or a component, but not both

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Service Income

Income earned from the provision of services to clients or customers.

Unearned Service Revenue

Income received by a company for services yet to be provided, recorded as a liability until the services are performed.