Which of the Following Statements Is True

question 143

Multiple Choice

Which of the following statements is true?

• A)The revenue activities of a service business involve providing services to customers.
• B)The revenue activities of a merchandising business involve the building of a product.
• C)The revenue activities of a service business involve the building of a product.
• D)The revenue activities of a merchandising business involve providing services to customers.

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Definitions:

Promissory Notes

Written, legally binding promises to pay a specified sum of money at a defined future date.

Installment Notes

A form of debt or loan that is paid back in regular, periodic installments, often including both principal and interest.

Principal

The original sum of money borrowed in a loan or invested, excluding any interest or dividends.

Debt-To-Equity Ratio

A metric revealing the comparative use of shareholders' equity and debt to finance a company's assets.