HotwireCom, an Online Travel Company Specializing in Cheap and Discounted

question 50

Multiple Choice

Hotwire.com, an online travel company specializing in cheap and discounted hotel rates and airfares, often asks customers if their travel dates are flexible when pricing their potential bookings. This practice helps Hotwire.com practice price discrimination by allowing it to:

• A) easily distinguish between different groups of buyers.
• B) book reservations for customers who are most likely to travel before those who are less likely to travel.
• C) post higher prices initially and then lower the price based on room availability.
• D) determine which customers are simply comparison shopping and which ones are ready to make a purchase.
• E) offer high prices to customers with flexible travel dates and low prices to those who are on a fixed income.

Calculate adjusted cost of goods sold to a cash basis using the direct method.

Identify and adjust net cash provided by (used in) investing activities.

Identify and adjust net cash provided by (used in) financing activities.

Prepare the operating activities section of the statement of cash flows using the direct method.

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Definitions:

Imported Swiss Box Of Chocolates

A product category involving chocolates that have been produced in Switzerland and then imported into another country.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for direct conversion of currency into gold.

Ounce Of Gold

A unit of measure for weighing gold, often used in financial markets and investments to set prices or determine value.

French Francs

The former currency of France before the country adopted the euro, reflecting France's national economic history.