Which of the Following Is a Similarity Between Goods and Services

question 70

Multiple Choice

Which of the following is a similarity between goods and services?

• A) mass production
• B) consistency
• C) automation
• D) Both have quality standards.
• E) Both can usually be kept in inventory.

Understand the financial benefits of sales discounts and their impact on reducing the delay in cash flow.

Comprehend the concept and purpose of purchase allowances in resolving customer satisfaction issues.

Recognize the role of price reductions in facilitating the sale of damaged or defective merchandise.

Identify the key differences between a single-step and a multiple-step income statement.

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Definitions:

Prepaid Insurance

Payments made in advance for insurance coverages, recognized as assets until the coverage period lapses and it then becomes an expense.

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not coincide with the calendar year.

Unexpired Insurance

The portion of an insurance premium that has not yet been used up and is considered a prepaid expense for the company.

Supplies Expense

The cost associated with consumable items or supplies used during a company's operations within an accounting period.