Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
Question
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Chapter 2, Problem 1MC
Expert Solution & Answer
Check Mark
To determine

Concept introduction:

An organization can be classified into manufacturing or servicing firm. The activities done under manufacturing business are manufacturing, payment to the supplier, sales and receipts from the customer.

To choose:

The primary source of revenue for a service business.

Answer to Problem 1MC

C. Providing intangible good and services

Explanation of Solution

Explanation for correct answer:

The primary source of revenue for a service business is providing intangible good and services. Hence the correct option is C.

Explanation for incorrect answers:

A. The primary source of revenue for a service business is providing intangible good and services. Hence this option is incorrect.

B. The primary source of revenue for a service business is providing intangible good and services. Hence this option is incorrect.

D. The primary source of revenue for a service business is providing intangible good and services.. Hence this option is incorrect.

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Principles of Accounting Volume 2

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