Which of the Following Are Examples of Facilitating Functions That

question 103

Multiple Choice

Which of the following are examples of facilitating functions that might be performed by a retailer of large appliances?

• A)Provide customers with a repair service.
• B)Give refunds if customers are dissatisfied with their appliance purchases.
• C)Stock and sell repair parts to customers.
• D)Offer credit to customers who want to buy an appliance.
• E)All of the above

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Definitions:

Financing Activities

Transactions and events where a business obtains funds or pays back funds to owners and creditors, typically reflected in the cash flow statement.

Direct Approach

A method used in financial accounting that records all transactions directly affecting the income statement, emphasizing cash receipts and payments.

Indirect Approach

A strategy or method that tackles objectives through indirect means rather than directly aiming at them.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.