Is there a significant difference between adjusting and closing for a service firm and a merchandise company?
Q: The business needs to record the trade discount in the book of account”. Question Do you agree…
A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…
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: Which of the following will be called as an expense of a Merchandise business? a. Sale of…
A: a.) Sale of merchandise inventory means sales of goods so it is and income. b.) Trade discount is…
Q: When a customer returns goods, the merchandiser will:
A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods…
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: In the preparation of the worksheet of a merchandising business, the ending balance of the…
A: Merchandise inventory is the current assets, goods purchased or manufactured with the purpose of…
Q: Under accrual accounting, when should a company that sells merchandise to customers recognize…
A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…
Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: What is difference between accounting for a long-term contract and accounting for a more normal sale…
A: Sale Revenue is recognized when the goods are actually dispatched and delivered to the customer. In…
Q: hat account does a merchandiser use that a service company does not use?
A: Merchandiser deals in purchasing and selling products to customer whereas a service company deals…
Q: When does a company typically recognize revenue for a bill-and-hold sale?
A: Bill and hold agreements represent a sales arrangement in which the buyer pays for the item or items…
Q: What are the ways that payments by a seller to a customer is done?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: Can a business change from one inventory costing method to another any time they wish? Explain.
A: change in the method of valuation of inventory is a change in accounting principle. for example…
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: The functions of and documents generated by which of the below departments determine when a…
A: Lets understand the basics. In organization, there are various department which are inter connected…
Q: Required: Do you think that the role of Accounting is very important in a Merchandise business? If…
A: The business that are engaged in the sale of products are known are merchandise business. The main…
Q: ) Is the accounting cycle in a merchandising operations different from a service operations?…
A: 1) yes the accounting cycle in a merchandising operations is different from a service operations .…
Q: When should a seller view a payment to its customer as a refund of part of the price paid by the…
A: Revenue recognition principle: The revenue recognition principle refers to the revenue that…
Q: • Explain why there isn't there a "Cost of merchandise sold" expense for a service business.…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: procedure will complete the purchase procedure in a company?
A: Option a is wrong because approving suppliers invoice is usually done at the beginning stage of…
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: What account balance is not used to computer the cost of good sold? a. Sales b. Purchased c.…
A: Calculate the cost of goods sold as follows: Cost of goods sold = Opening inventory + Purchases -…
Q: When a store purchases merchandise, why are individual departments not allowed to directly deal with…
A: Internal control helps an organization to safeguard its objectives. It helps to reduce risk and…
Q: Which of the following functions is not included in the typical expenditure cycle involving goods?…
A: Expenditure cycle refers to specific period related to acquisition of and payment of goods and…
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: 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: 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: True or False. Closing entries for a merchandising business are not similar to those for a service…
A: The solution for the above question is shown below.
Q: Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B.…
A: FOB (Freight on Board) Destination seems to be a shipping terminology that signifies the seller…
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: In comparing the accounts of a merchandising company with those of a service company, what…
A: Perpetual inventory system:- It is the system in which sales and purchase of inventory is a…
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: 1) What distinguishes a retail business from a service business
A: Introduction:- Retail business is completely different from Service business. Retail business mean…
Q: A retailer using a perpetual inventory system will make a. the same number of adjusting entries as a…
A: Service firms do not require to maintain detailed records inventory as they do not have multiple…
Q: Which of the following items would not appear in the operating section of the multiple−stepincome…
A: In this question covered the concept of Multiple Income Statement . Multiple Income Statement…
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: Which of the following statements is true about a purchase order? O a. It is a company's written…
A: The Purchase Order (PO) is a business document and the first official bid issued to a seller by the…
Q: The revenue account for a merchandising business is typically called ___________. Group of answer…
A: Solution: Merchandise business generally involves purchase and sales of merchandise. It is a type of…
Is there a significant difference between adjusting and closing for a service firm and a merchandise company?
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- 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 aboveWhat effects on a retail store's accounting equation occur when merchandise returned by customers is recorded?In comparing the accounts of a merchandising company with those of a service company, what additional accounts would the merchandising company likely use, assuming it employs a perpetual inventory system? Which financial statements would these accounts appear on?
- True or False. Closing entries for a merchandising business are not similar to those for a service business.When closing accounts what closing entry changed from a service business to a merchandise 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?
- "Do the steps in the accounting cycle for a merchandising company differs from the steps in the accounting cycle for a service company?" Is the measurement of net income in a merchandising company conceptually the same as in a service company?How does the income statement and balance sheet of a merchandising company differs from a service company? What are the two inventory control systems? How one inventory control system is different from the other?Required: Do you think that the role of Accounting is very important in a Merchandise business? If yes, explain in your own words to justify the statement