True or false 1. One of the most important differences between a service business and a retail business is in what is sold 2. In a merchandise business, sales minus operating expenses equals net income
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: Identify any two examples of Wholesale Merchandise Business and Retail Merchandise Business 2.…
A: Wholesale Merchandise Business:-Wholesale business means when manufacturers do not deal with the…
Q: 1. "The steps in the accounting cycle for a merchandising company are different from the accounting…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: Sales revenues are usually considered earned when Select one: a. goods have been transferred from…
A: Definition: Sales Revenue: Sales Revenue is considered as the income received from the sale of the…
Q: Which of the following statements is not true? Expense is the amount incurred or paid in earning…
A: Expense: Amount spent for running business activities in return for some benefit.
Q: the income statement, interest revenue is found in operating revenues and expenses.…
A: Interest revenue earned is not the main source of income for a business
Q: Difference in the income statement of a service and a merchandising business
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What is the financial impact on a company when a customer returns a product for a refund?a. Sales…
A: Sales return: It can be defined as an event where customers return the goods previously purchased…
Q: Expenses related to office maintenance will be called as a. Sales Discount expense b. Selling…
A: (A) Sales Discount Expense: It is expense given to buyer of goods to incentivize his purchases. It…
Q: elect all that apply Determine which of the following statements below regarding a merchandiser are…
A: Solution Concept Merchandiser are the person who basically buys a merchandise and sells the…
Q: Why wouldn't a service business have a "Sales revenue" account? They are just selling their…
A: THE REVENUE IS THE FIRST SECTION OF AN INCOME STATEMENT AND IT CONTAINS BOTH THE REVENUE GENERATED…
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 income statement of a merchandising company includesa major type of cost that does not appear in…
A:
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: 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: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…
A: Sales return: when the sold item being returned by the customer to the seller. It is known as sales…
Q: E2B. Using the classification scheme below for a multistep income statement, match cach account with…
A: A Multi-step Income statement is Profit and Loss account in which Revenue and Expense items are…
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: 2. Classify the following expenses if it is Selling and Distribution, Administrative, Finance…
A: The student was asked to provide an Answer for 2nd question hence answer is given to 2nd question…
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: 1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that…
A: Solution:- 1) Explanation of one difference between manufacturing and merchandising business as…
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: 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: Write TRUE if the statement is correct and if false, write the word or phrase that makes the…
A: Preparation of income statement helps the business entity in determining how much amount of gross…
Q: True or False 1. Sales returns and allowances is a contra-revenue account 2. Sales discount is a…
A: A contra account is that account that reduces the value of the underlying related account in the…
Q: Income from operations will always result if a. revenues exceed operating expenses. O b. gross…
A: 25) Income from operation will always result if- the cost of goods sold exceeds the operating…
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: Which account is not classified as selling expenses? O A. Sales Discounts O B. Transportation out O…
A: Answer) The correct answer in the given question is: (B) Transportation Out Selling expenses are…
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: 1. Discuss what could possibly cause the problem of high returns of goods in a business
A: Note Dear student as per bartleby guideline we are required to answer the first question only .…
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: 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: Activity 1. Classify Me Instruction: Identify each element or account title if it can be found on a…
A: Service business means the business of earning revenue by providing services. Merchandising business…
Q: Identify which one of the following formula is used to calculate the net income of the service…
A: NET INCOME= REVENUE - EXPENSES.
Q: Activity 1. True or False. Write "TRUE" if the statement is correct and "FALSE" if the statement is…
A: An income statement shows the company how much net income has been earned during a period. It also…
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: Application Directions: On the space provided, write your FIRST NAME if the idea being expressed is…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Determine the following: a. Net Sales b. Net Purchases c. Cost of Goods Sold d. Bad Debts Expense
A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…
Q: Application pirections: On the space provided, write your FIRST NAME if the idea being expressed is…
A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…
Q: We can say that the business is in profit, when: Select one: a. Income exceeds Liabilities b. Assets…
A: Following is the answer to the question
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- n: In a sheet of paper, write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. The revenue earned by a service business for rendering services for a fee is commonly referred to as Service Income or Service Revenue. 2. A Statement of Comprehensive Income may be presented using a “multistep statement” presentation only. 3. Revenue includes both income and gains. 4. If expenses are greater than income, the difference is net loss. 5. The revenue earned by the merchandising business from its sales of goods is commonly referred to as Sales. 6. Income increases economic benefits during the period in the form of inflows of cash from rendering services. 7. The statement of Comprehensive Income shows information on an entity’s financial performance during the period. 8. A Statement of Comprehensive Income that shows expenses by its function is referred to as prepared using a single-step approach. 9. Expenses encompass both…Which of the following statement is False for Multi-step income statement of a merchandise business? a. It helps in analyzing how well the company is performing b. It divides the expenses into Selling, General and administration expenses c. Users can see how much expense is incurred in selling the product and how much is in administering business d. It divides operating expense into Direct and Indirect expenses.2. Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS = Cost of Goods Available for Sale – Ending Inventory c. Sales Revenue – COGS – Operating Expenses = Net Income d. Net Income = Operating Expenses + Gross Profit 3. Pinkan Company sells merchandise to Castle Corporation with terms FOB Shipping Point. In this case, the freight cost will be paid by … a. Pinkan Company b. Castle Corporation c. Shipping Company d. Pinkan Company and Castle Corporation
- 4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What is the formula in computing Net Income (Loss) for Service Entities? 6. What is the formula in computing Net Sales? 7. What is the formula in computing Cost of Goods Sold?This is about accounting in merchandising business. Thanks! 1. How much is the cost of goods sold? 2. How much is the gross profit? 3. How much is the net income?1. Which accounts are used in a merchandising business but not in a service firm?2. What is the primary revenue account in a merchandising business? Can a merchandising business have a Service Income account?3. What are the two systems of maintaining inventory? Briefly define each.4. If you are going to put up a business, what type of business would you wan toestablish? Why?
- Gross income derived from business shall be equivalent to gross sales less salesreturns, discount and allowances, but undiminished of cost of goods sold. a.true b.false1) What type of account is Cost of Goods Sold? What statment does it appear on? Is it a Real or Nominal account? Is it temporary? Is it a CR or DR balance.2) I have read on the internet that it is an expense, however looking at my workbook showing the Income Statement it is lilsted under Sales & Revenues and added together to obtain Gross Profit.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.
- Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business? a. Gross Margin will be multiplied by Total Operating expenses b. Operating expenses will be deducted from net sales c. Gross Margin will be divided by Total Operating expenses d. Total operating expenses will be deducted from Gross Margin Clear my choice1.Which of the following represents the actual cost of merchandise that the company was able to sell during the period? cost of labor cost of sale cost of goods available for sale cost of good manufactured 2.Which of the following is NOT an operating expense? cellphone load electricity advertising interest expense 3.. Which of the following is considered as non-operating expense? rent expense interest expense supplies expense insurance expense Please answer it completelyAssuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business? a. Gross Margin will be divided by Total Operating expenses b. Total operating expenses will be deducted from Gross Margin c. Gross Margin will be multiplied by Total Operating expenses d. Operating expenses will be deducted from net sales