Service Organizations ________

question 48

Multiple Choice

Service organizations ________.

• A) produce physical and nonphysical outputs
• B) produce physical outputs only
• C) require nonphysical inputs only
• D) produce nonphysical outputs only

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Definitions:

Previous GAAP

The Generally Accepted Accounting Principles that were in place before the current set or version was adopted.

Recognize Assets

The process of recording an item in the financial statements as an asset, acknowledging its probable future economic benefits.

Derecognize

The removal of an asset or liability from a company's financial statements, often due to it being sold, fully depreciated, or disposed of.

Reclassify Items

The process of moving accounting entries from one ledger or category to another to correct or clarify financial statements during the preparation process.