Which of the Following Characteristics Apply to Service Organisations

question 39

Multiple Choice

Which of the following characteristics apply to service organisations?
i.They produce intangible outputs
ii.Services cannot be stored.
iii.They purchase goods for sale.iv.Services are consumed as they are produced.

• A) i,ii and iv
• B) ii,iii and iv
• C) i,ii and iii
• D) All of the given answers

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Definitions:

Indirect Method

The indirect method is a way of calculating cash flows from operating activities for the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.

Cash Flows From Operations

The net amount of cash generated or used by a company in its operational activities during a specific period.

Deferred Income Taxes

Represents taxes that are owed but not yet paid, due to differences in the timing of recognition of revenue and expenses for tax reporting and financial accounting purposes.