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.

Question
Asked Nov 5, 2019
3 views
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.
check_circle

Expert Answer

Step 1

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Contribution Margin Sally Company sells 24,000 units at $28 per unit. Variable costs are $19.60 per ...

A: a. Compute contribution margin ratio.

question_answer

Q: A Community health clinic's costs are shown below. What is total average cost per patient? 4,824 Pat...

A: Determine variable cost per unit.

question_answer

Q: How is accounting for service businesses different than accounting for merchandising businesses?

A: Services business: A business that provide services to its customers is called service business. Som...

question_answer

Q: How do I go about finding the ending inventory using the lifo method?

A: In LIFO method, the inventory received last is despatched first and the ending inventory comprises o...

question_answer

Q: Skysong Company uses a periodic inventory system. For April, when the company sold 540 units, the fo...

A: Inventory Valuation under FIFO:"FIFO" stands for first-in, first-out, meaning that the oldest invent...

question_answer

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 yea...

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as t...

question_answer

Q: If customers owe a company for sales which have already been delivered but not yet paid how is that ...

A: When the company sells goods to its customer on credit basis then the amount equivalent to the value...

question_answer

Q: A model NASCAR race car can list for $79.99 with a trade discount of 40%. What is the net price of t...

A: Trade discount represent discount on retail price.

question_answer

Q: Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost da...

A: (a)Prepare cost of goods manufactured schedule: