A Company Which Is in the Business of Reselling Tangible

question 241

Multiple Choice

A company which is in the business of reselling tangible products purchased from supplier to businesses which resell the product is what type of company?

• A) Manufacturing
• B) Service company
• C) Retailer
• D) Wholesaler

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Definitions:

Payment of Dividends

This refers to the distribution of a portion of a company's earnings to its shareholders.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, recognizing the asset's wear and tear, deterioration, or obsolescence.

Indirect Method

A way of calculating cash flows in the statement of cash flows where net income is adjusted for non-cash transactions and changes in working capital.

Inventory Increase

A rise in the quantity or value of goods and materials that a company holds for the purpose of sale or production.