Which of the following statements is true about a retail business? The operating cycle for a service business differs from the operating cycle for a retail business in that a service business must purchase merchandise for sale to customers. The revenue activities of a retail business involve rendering services to customers. The operating cycles of retail businesses and service businesses are exactly the same. The revenue activities of a retail business involve the buying and selling of merchandise.

Which of the following statements is true about a retail business? The operating cycle for a service business differs from the operating cycle for a retail business in that a service business must purchase merchandise for sale to customers. The revenue activities of a retail business involve rendering services to customers. The operating cycles of retail businesses and service businesses are exactly the same. The revenue activities of a retail business involve the buying and selling of merchandise.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 6MC: Which of the following represents the components of the income statement for a merchandising...

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Similar questions

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 profit
What is the difference between a wholesale business and a retail business?
Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b. Merchandise Inventory c. Sales Revenue d. All of the above
Which of the following accounts is used in merchandising but not in service type of business? a. allowance for bad debts b. purchase discounts c. depreciation expense d. sales returns and allowances
How is accounting for service businesses different than accounting for merchandising businesses?
What distinguishers a retail business from a service business?
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?
Provide one example of a transaction that affect service business and merchandise business.
Which of the following represents the components of the income statement for a merchandising business? a.Service Revenue – Operating Expenses = gross profit b.Sales Revenue – Cost of Goods Sold = gross profit c.Service Revenue – Cost of Goods Purchased = gross profit d.Sales Revenue – Cost of Goods Manufactured = gross profit
What distinguishes a merchandising business from a service business?
The account that appears in the chart of accounts for a merchandising entity but not for service entity is a. Accounts receivable b. Advertising expense c. Sales returns and allowances d. Accumulated depreciation
Select all that apply Determine which of the following statements below regarding a merchandiser are correct. (Check all that apply.) 1. Merchandisers are also identified as wholesalers. 2. Wholesalers only sell services to customers. 3. Merchandisers are often identified as retailers. 4. A merchandiser earns net income by buying and selling merchandise.