Question

Which of following companies record revenues when selling inventory?
a. Service companies.
b. Manufacturing companies.
c. Merchandising companies.
d. Both manufacturing and merchandising companies.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Explain how we initially record a long-term asset.

A: Click to see the answer

Q: Describe the audit opinion that should be given and explain why. When the client is not a going conc...

A: Going concern assumption:   Going concern assumption is a basic assumption used for the preparation ...

Q: Corporate bonds that can be exchanged for shares of the corporation’s common stock ifcertain conditi...

A: Corporate bond: It can be defined as a debt security, usually issued by the public or private corpor...

Q: From the following list of accounts, calculate the quick ratio.Cash....................................

A: Click to see the answer

Q: Match each of the numbered descriptions with the principle, component, or descriptor that it best re...

A: Given below are the terms indicated with the meaning:

Q: A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is ...

A: Answer: b. Accounts payable ledger.  

Q: If inventory errors are said to correct themselves, why are accounting users concerned when such err...

A: Click to see the answer

Q: What are the three major ways in which activity-based costing improves the accuracy ofproduct costs?

A: Activity based costing is a system in which costs are allocated to the products on the basis of acti...

Q: Which of the following classifications represents the most shares of common stock?a. Unissued shares...

A: Unissued shares are those shares which are not issued yet. Issued shares means those shares which ar...

Q: Identify each of the following as a (a) purpose of an internal control system, (b) principle of inte...

A: Internal Control:   It is a process of assuring the effectiveness and efficiency of the objectives o...

Q: Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output...

A: Cost is referred to the amount which is incurred for transferring the goods from raw material to fin...

Q: Once a month, the sales department sends sales invoices to the accounting department to be recorded....

A: Internal control:   Internal control is a process which ensures continuous reliability of accomplis...

Q: cheba construction company acquired a new crane for 360,000$ at the beginning of year 1. the crane h...

A: Under straight line method, depreciation remains same every year. Depreciation under straight line m...

Q: Identify each item 1 through 10 with the system component A through E that it is best associated wit...

A: Accounting information System: An information system takes the raw data as input converts into the ...

Q: uarez Department Store has derived the following data from the store’s operations in the year ended ...

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the ans...

Q: A retailer completed a physical count of ending merchandise inventory. When counting inventory, empl...

A: a. Ending inventory is understated by $3,000.

Q: At Reyes Company, checks are not prenumbered because both the purchasing agent and the treasurer are...

A: Internal control is a management task which is the set of rules and procedures which are set by the ...

Q: A company purchased equipment with a cost of $96,000. Residual value at the end of a six-year useful...

A: (a)  

Q: Prepare journal entries to record each of the following sales transactions of a merchandising compan...

A: Journal entry is the first step of bookkeeping . All transactions incurred during  the period  are r...

Q: Choose from the following list of terms and phrases to best complete the following statements. a. Ca...

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic transaction...

Q: Accounting Question

A: Additional paid in capital is the amount received in excess of par value at the time of issue of com...

Q: Define outstanding check

A: Bank reconciliation: Bank reconciliation can be defined as the process wherein the balances in the a...

Q: During the year, Trombley Incorporated has the following inventory transactions.For the entire year,...

A: 1a.  

Q: imes interest earned A company reports the following: Income before income tax expense $4,628,400 In...

A: Formula for times interest earned is "Income before interest expense and income taxes/Interest expen...

Q: Define serial bonds

A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows to...

Q: Shilling Company reports the following information for its fiscal year end of March 31,2019:Common s...

A: Given information is: Shilling Company reports the following information for its fiscal year end of ...

Q: On January 12, Ferrell Incorporated obtains a permit to start a comedy club, which will operate only...

A: The $13,000 purchases of tables and chairs are cash transactions and will be added to investing cash...

Q: Which of the following is not considered to be an advantage of a corporation?a. Limited liability of...

A: Corporation:   Business concerns which have a separate legal entity; and are owned by shareholders, ...

Q: the amount of inventory that would be reported on the absorption costing balance sheet is:

A: Click to see the answer

Q: Which of the following regarding retained earnings is false?a. Retained earnings is increased by net...

A: Answer:   Option c

Q: What kind of account is Unearned Revenue?a. Liability accountb. Asset accountc. Expense accountd. Re...

A: The correct option is option “a”. Unearned revenue is not classified as an asset, owners' equity, re...

Q: An auditor’s purpose in auditing the information contained in the pension footnote mostlikely is to ...

A: The correct answer is Option C.

Q: Define effective-interest method

A: Interest is the cost of borrowing. Generally the amount paid for borrowing money or taking a loan is...

Q: The issuance of stock for cash is reported on the statement of cash flows undera. financing activiti...

A: Issuance of stock: It refers to the number of shares that are sold to the stockholders from number o...

Q: Jeff is the new inventory manager for Alan Company. During the year-end inventory count, Jeff forget...

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...

Q: What are the four major elements of the broad definition of assurance services?

A: Assurance Service: Assurance services are the services provided by the independent professional for ...

Q: To obtain financing for her hair salon, Valeri asked you toprepare a balance sheet for her business....

A: Assets: These are the resources owned and controlled by business and used to produce benefits for th...

Q: Use the following information from Marvel Company for themonth of July. July 1 Beginning inventory 7...

A: Specific identification method: Specific identification method identifies the cost of each item in e...

Q: Contractors Depot Co is an established builders’ merchant, and a new audit client of your audit firm...

A: a) Inherent risk: The inconsistency of internal controls is not responsible for the inherent risk bu...

Q: You are told the column totals in a trial balance are not equal. After careful analysis, you discove...

A: SL No.  Statements Account Status Amount ($) a The debit column of the Trial Balance Correctly Sta...

Q: Continued from previous question

A: The missing amounts were as follows:

Q: Bond Company reported the following inventory data:Year Inventory (in millions)2016201720182019$2,50...

A: Trend percentages: Method of examining financial information attained over an extended period usuall...

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off (DW)...

A: Click to see the answer

Q: What is operational auditing? How does the AICPA view operational auditing?

A: Click to see the answer

Q: Accounting Question

A: Corporation: A corporation is an organization—usually a group of people or a company—authorized by t...

Q: Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporatio...

A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,...

Q: (Learning Objective 2: Issue stock to finance the purchase of assets) This short exercise demonstrat...

A: Case A The journal entries are: In the books of Wolford Company Journal Entries Date Particul...

Q: Darwin Inc. provided the following information:Budgeted production 10,000 unitsActual production 9,5...

A: Given: Budgeted production is 10,000 units.Actual production is 9,500 units.Budgeted input is 9,750 ...

Q: Which of the following would be considered an assurance engagement?a. Giving an opinion on a prize p...

A: Click to see the answer

Q: Enter the letter of each system principle in the blank next to its best description. A. Control prin...

A: Accounting principle are the principles/guidelines and rules that organizations must follow when ann...