In Comparison to Light Crude Oil, Which of the Following

question 1

Multiple Choice

In comparison to light crude oil, which of the following statements is NOT true with respect to heavy crude oil?

• A) oil companies prefer heavy crude oil because it is more profitable.
• B) heavy crude oil is more difficult to extract.
• C) refining heavy crude oil is more expensive.
• D) heavy crude oil is more viscous.
• E) most of the remaining oil reserves consist of heavier crudes.

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Definitions:

Operating Cycles

Operating cycles represent the duration it takes for a company to purchase inventory, sell products or services, and collect cash from customers, depicting the cash flow process.

Profit Margins

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a company.

Perpetual Inventory System

An accounting system that continuously updates inventory records after each purchase or sale.

Discount Period

The time frame in which a discount is offered for early payment on goods or services, often used to encourage quicker payment by customers.