The basic differences between the financial statements of a merchandising business and a service...
Question:
The basic differences between the financial statements of a merchandising business and a service business include reporting cost of merchandise sold on the income statement and the:
a. inclusion of merchandise inventory on the balance sheet as a current asset.
b. stockholders' equity section of the balance sheet.
c. other income section of the income statement.
d. inclusion of a stockholders' equity statement.
Financial Statements:
The presentation and the accounts included on the financial statements will look different depending on if the company is a manufacturing business, merchandising business, or a service based business.
Answer and Explanation: 1
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View this answerAnswer choice: a. inclusion of merchandise inventory on the balance sheet as a current asset.
Explanation:
The financial statements of a...
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