Which of the Following Is Least Likely to Be Considered

question 24

Multiple Choice

Which of the following is least likely to be considered a finite customer population?

• A) subassemblies in a just-in-time manufacturing environment
• B) fast food restaurant employees waiting to use the restroom
• C) planes waiting to take off at an airport
• D) a class of 10 students who might visit their professor during office hours
• E) cars taking Exit 76 off of a freeway during rush hour

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Definitions:

Capital Assets

Long-term assets acquired or owned by a company that are used in its operations to generate income.

Consolidated Financial Statements

Financial statements that show the financial position, results of operations, and cash flows of a parent company and its subsidiaries as a single economic entity.

Direct Method

a way of preparing the cash flow statement where actual cash flows from operating activities are reported rather than adjusting net income on an accrual basis.

Consolidation Process

The procedure of combining the financial statements of separate subsidiary entities into those of the parent company to present as one financial statement.