Services: Service means a kind of activity done by an organization to earn income. Service is intangible in nature and cannot be touched. To receive a service, one has to pay the amount charged by the service provider. Example of services are, a service provided by doctor, accountant and teacher.
Product: Product is the item that is offered for sale in ordinary course of business. A businessman earns money by selling the product demanded by the customers. Products are tangible in nature and customer has to pay an amount to purchase the product. A product may be durable or non durable. Durable products can be used for a long period, such as television, mobile phone whereas non durable product can be used only one time as there life is of very short period such as, milk, wheat, water, eatable products.
To identify: Three actual businesses that offer services and three actual businesses that offer products.
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FINANCIAL ACCOUNTING FUNDAMENTALS
- Identify three types of services typically offered by accounting professionals.arrow_forwardIdentify the three primary classifications of businesses and explain the differences among the three.arrow_forwarda. Provide two examples of transactions that affect a service business. Explain b. Provide two examples of transactions that affect a retail business. Explainarrow_forward
- How might a business interact with each of the four different stakeholders you identified in the previous exercise?arrow_forwardVendors are all of the followings, Except: A. Businesses are those businesses you receive services from. B. Individual you receive services from. C. Government Agencies you receive Services from. D. Individual you provide Services to.arrow_forwardThere are various users of accounting information. Identify any three and explain howthey benefit from accounting information.arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College