Informal Communication Between Consumers About Goods and Services Is Called

question 48

True/False

Informal communication between consumers about goods and services is called word of mouth.

Recognize various elements of terms of sale and their significance.

Understand inventory management techniques, including the Economic Order Quantity (EOQ) model.

Describe the importance of financial statements in evaluating credit applications.

Identify the effect of economic conditions on a firm’s credit evaluation.

---

Definitions:

Wages Payable

A liability account that records the amounts owed to employees for work performed that have not yet been paid.

Accounts Receivable

Funds that customers owe to a company for products or services provided but for which payment has not been received.

Unearned Revenue

Money received by a business for services or products yet to be delivered or provided, recognized as a liability on the balance sheet.

Ledger

A comprehensive set of accounts that records all financial transactions of a business, categorized by type.