How do the components of revenues and expenses differ between merchandising and service companies? Revenues Expenses Merchandising Service
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- Which of the following represents the components of the income statement for a merchandising business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Sales Revenue - Cost of Goods Manufactured = gross profit D. Service Revenue - Cost of Goods Purchased = gross profitSales Returns and Allowances is classified as a contra-cost account on the income statement.Which of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
- How does reporting information for a merchandising company differ from financial reporting for a service organization?(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.In the income statement of a merchandising business, why do you think we have to categorize expenses based on their nature or functions?
- What are the differences between accounting for service companies and accounting for merchandise companies?why service industry involve operating expenses and retail industry involve operating expenses and cost of goods sold?How is accounting for service businesses different than accounting for merchandising businesses?
- How is the accounting cycle different for a merchandising operation, as compared to a service business? How do the asset, revenue and expense accounts differ?What is the revenue account for a merchandising business called? Group of answer choices gross profit fees earned net sales sales or sales revenue.What is the difference in the operating cycle of a service provider and a merchandiser?