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?

Q: When a merchandising business is compared to a service business, the financialstatement thatis…

A: Merchandising business: It is a set of activities we do to sell our product and services to the…

Q: Are there significant distinctions between conducting adjustment and closing for a service firm and…

A: Service Industry Service industry mainly focus on the providing services to the customers and the…

Q: What distinguishes a retail business with the services business?

A: Retail business and Service business are two types of business, in which one provides goods for use…

Q: Most of the accounting cycles have journal entries that accompany activities of each cycle.Which of…

A: Recording transaction in journal is termed as journalizing the entries. Transaction are first…

Q: Most of the accounting cycles have journal entries that accompany the activities of each cycle.…

A: A process of identifying a transaction, analyzing it and then recording the same in the books is…

Q: What is the revenue account for a merchandising business called? Group of answer choices gross…

A: Solution: Merchandise business is a type of trading business that involves purchase and sales of…

Q: What is the impact of the credit and collection functions on the other parts of a business (or on…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…

Q: Which of the following is not considered an Operating Expense? Transportation out Cost of Goods Sold…

A: Operating expenses are the expenses  incurred  in ordinary course of business.These include those…

Q: Which of the following would not be considered an internal user of accounting data for the LMN…

A: Internal user means the person with in the company who use the financial information or accounting…

Q: How is accounting for service businesses different than accounting for merchandising businesses?

A: Services business: A business that provide services to its customers is called service business.…

Q: What is the account title used for revenue when goods are delivered to customers?

A: Account title: An account title is a unique name assigned to an account in an accounting system. An…

Q: capi

A: A)Appropriate circumstances to capitalise tha cost as an asset instead of an expense A capitalized…

Q: Define and explain subsidiary ledgers in merchandising business?

A: Subsidiary ledgers are the ledgers that contain information about specific control accounts in…

Q: Do you think that the role of Accounting is very important in a Merchandise business? If yes,…

A: SOLUTION- A merchandising business buys goods in finished form for resale to customers. A…

Q: Which of the accounting controls ensure that a company's resources are used efficiently and…

A: Controls are the procedures which are designed and monitored by the management to ensure that the…

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: The "Cost of goods sold" account is associated with which of the following major categories? O…

A: The direct cost which is expended for the production of the goods is known as COGS. It includes…

Q: What is meant by purchase return and sales return in accounting?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: Which of the following accounts does a manufacturing company have that a service company does not…

A: Cost of Goods Sold:  Cost of goods sold means the direct costs related to the production of the…

Q: Explain how a retailing firm would determine the cost of goods sold during an accounting period.

A: Retailing firms are those firms that are run for the prime purpose of earning profits. The cost of…

Q: What criteria determine whether a company can recognize revenue over time?

A: Revenue is recognized over time if one of the following conditions is met: The customer…

Q: Is there a significant difference between adjusting and closing for a service firm and a merchandise…

A: Merchandise Company is a company that purchases finely finished goods and commodities and later…

Q: 2. Which Asset account/s appears in the Statement of Financial Position of a merchandising Business…

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: Which of the following accounts is used in merchandising but not in service type of business?…

A: Service company deals with the intangible product whereas merchandise company buys tangible product…

Q: When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Differentiate…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What items appear in financial statements of merchandising companies but not in the statements of…

A: Definition: Merchandising businesses: Merchandising companies that buy goods from suppliers, or…

Q: Explain the difference between the revenue statements of a merchandiser and those of a manufacturer…

A: 1. Income Statement - An a income statement is the financial statement that shows the organization's…

Q: Which of the following statements is true about a retail business? The operating cycle for a…

A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

Q: Which is incorrect concerning the presentation of Income Statement? A. When items of income and…

A: Presentation of Income statement :             The income statement is prepared for presenting the…

Q: Explain the difference between the income statements of a merchandiser & a manufacturer

A: 1. Income Statement - An income statement is a statement that shows the revenue earned and expenses…

Q: What are the differences between accounting for service companies and accounting for merchandise…

A: The Answer :

Q: Revenue Cycle is: Select one: a. None of the above b. A recurring set of business activities and…

A: Solution: Revenue cycle is  "A recurring set of business activities and related information…

Q: Besides inventories, what other assets often appear on manufacturers’ balance sheets but not on…

A: Nature of assets of both the companies differs with each other as Manufacturing Companies deals with…

Q: In the income statement of a merchandising business, why do you think we have to categorize expenses…

A: Income Statement Income Statement shows company's revenues and expenses during a particular period

Q: What is the difference in the operating cycle of a service provider and a merchandiser?

A: Operating cycle is defined as the amount of time the company requires to use its cash in order to…

Q: What is Sales Mix and why is it used in retail operations?

A: Sales mix is the proportion of each product sold by a company as a percentage of its total sales.…

Q: Explain the difference between external transactions and internal transactions. If a company…

A: Difference between external events, and internal events:  • External events are the events which…

Q: What is the role of accountant in setting the price of the goods or services?

A: Price of product shows the amount of product that the seller is willing to offer to the buyer.

Q: Selling expenses DOES NOT include: A. Advertising expense B. Making sales C. Accounting and Human…

A: Selling expense is the expense which involves any kind of cost that is incurred through the…

Q: How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec.…

A: Cost of goods sold is the cost of goods that are being sold in that particular period. It is…

Q: The account that appears in the chart of accounts for a merchandising entity but not for service…

A: Merchandise Entity - In this type of entity corporation is mainly generate revenue through sale of…

Q: What is the difference between Accounts Payable foradvertising and Advertising Expense?

A: Operating expenses: These are the expenses that are incurred in carrying out the normal operations…

Q: what is sale revenue in retail industry? what is service revenue in service industry? what is…

A: Revenue represents the income generated by the entity either through business operations or through…