Identify the type of business as service (S), retail merchandiser (RM), or wholesale merchandiser(WM) for each of the following.1. The company reports no inventory on its balance sheet.2. The company is a true “middleman,” buying from a manufacturer and selling to othercompanies.3. The company sells goods to consumers.

Q: For each of the following accounts used by a retail business, determine its classification: asset,…

A: Contra assets are those whose accounts balance is credit. Generally, all asset accounts show debit…

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: Which of the following is an example of Expense of a Merchandise Business? a. Salary and Wages paid…

A: Introduction: Expense: Amount spent on for running the day to day activities of the business called…

Q: What effects on a retail store's accounting equation occur when merchandise returned by customers is…

A: Introduction:- The following Accounting Equation used for preparation of balance sheet as follows…

Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…

A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…

Q: When the goods are sent on consignment, the goods are recorded in the books of a. Business have…

A: Consignment means where consignor send goods to consignee to be sold by later on the behalf of…

Q: In a sheet of paper, write TRUE if the statement is correct and FALSE if the statement is incorrect.…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: When should revenue from the sale of merchandise normally be recognized? (Assume the company reports…

A: The revenue should be recognized in the following conditions. 1.When the amount realized or received…

Q: Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c.…

A:

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: retail businesses, the largest expense is created 2. When merchandise that was sold is returned, a…

A: Sales returns : A contra revenue account is what is used to describe sales refunds and allowances.…

Q: Which of the following will be called as a Merchandising Business? a. Receives a loan from bank b.…

A: Merchandising business: A merchandising business is the most common type of business is undertaken…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: The main difference between the income statements of a merchandising and a service type business is:…

A: SOLUTION EXPLANATION - A MERCHANDISING COMPANY ENGAGED IN PURCHASE AND RESALE OF TANGIBLE GOODS.…

Q: The difference between sales and cost of goods sold for a retail business is: a.net sales. b.gross…

A:

Q: 1. The SCl is a picture of the results of operations of the company as of the cut- off-date. 2. The…

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

Q: I have a couple of questions. PLEASE answer thoroughly and explain.1) Are all types of revenue…

A: Dear student, as you have not mentioned the question number to be answered, so we are answering the…

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: Before paying an invoice for goods received on account, the controller or treasurershould ensure…

A: Treasurer or controller:

Q: A company sells merchandise for cash. This transaction is recorded as: Group of answer choices A…

A: Golden Rules: There are three golden rules nominal, personal, and real. All financial transactions…

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

A:

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: . Net income plus operating expenses is equal to (assume there are no other income and expenses). a.…

A: Solution: 16 Cost of merchandise sold is equal to Net Income minus Gross Profit Cost of goods…

Q: Which of the following businesses would most likely not report cost of goods sold on their income…

A: Cost of goods sold refers to that direct costs of the inventory the company incurred to produce the…

Q: 1. Credit Terms a. The cost of the merchandise inventory that the business has sold to customers. 2.…

A: FOB destination point vs FOB shipping point : In FOB destination point, the seller transfers the…

Q: Which of the following will be not be called as Source Document of a Business? a. Debit note raised…

A: Source document contains the information about a transaction like, date, amount, party, etc. Debit…

Q: inventory that it previously purchased. The entry to record that transaction should be: Group of…

A: The journal entries are prepared to record daily transactions of the business.

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: when the company sold goods on account the A/P will be in the debit side O True O False

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

Q: Which of the following statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

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

A: The Answer :

Q: accounts if it is normally used in Service and/or in Merchandising Business

A: Service business means business to earn income through providing services. Merchandising business…

Q: What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports…

A: Accrual Basis of Accounting: The accrual basis of accounting is a method of accounting where the…

Q: 1. Which accounts are used in a merchandising business but not in a service firm? 2. What is the…

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

Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…

A: The freight cost  is paid by the seller till the goods have reached their destination and then the…

Q: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: The "dual nature of merchandise transactions" as described in this chapter means every business…

A: Solution Merchandising company means the company which is not engage in production and are rather…

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: Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS…

A: The difference between gross profit and net profit or net income is the operating expenses. Gross…

Q: Which of the following statement is False for Multi-step income statement of a merchandise Business?…

A: The multi-step income statement is a type of Income Statement that shows different parts of a single…

Q: 1) What distinguishes a retail business from a service business

A: Introduction:- Retail business is completely different from Service business. Retail business mean…

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 totals credits and total debits? Also answer the following questions: Answer the…

A: Total credits= sales credit+ sales tax payable credit =6398.82+311.18 =6710 Total debit=Account…

Q: Which of the following statement is False for Multi-step income statement of a merchandise business?…

A: Net income is referred to the income earned by an organization or an individual proprietor after…

Q: Assuming that Merchandise business use multiple step income statement. Which of the following will…

A: Revenue - Expense = Profit

Q: For each of the following, indicate whether the item would be reported on the balance sheet…

A: The financial statements of the business include balance sheet and income statement.

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.