How do the components of revenues and expenses differ between merchandising and service companies? Revenues Expenses Merchandising Service
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- Which of the following represents the components of the income statement for a merchandising business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Sales Revenue - Cost of Goods Manufactured = gross profit D. Service Revenue - Cost of Goods Purchased = gross profitSales Returns and Allowances is classified as a contra-cost account on the income statement.Which of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
- How does reporting information for a merchandising company differ from financial reporting for a service organization?(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.What are the differences between accounting for service companies and accounting for merchandise companies?
- In the income statement of a merchandising business, why do you think we have to categorize expenses based on their nature or functions?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?why service industry involve operating expenses and retail industry involve operating expenses and cost of goods sold?
- How is accounting for service businesses different than accounting for merchandising businesses?What is the revenue account for a merchandising business called? Group of answer choices gross profit fees earned net sales sales or sales revenue.What is the difference in the operating cycle of a service provider and a merchandiser?
