Asked by Mlebinge Endani on Jul 25, 2024
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Describe the major differences in preparing the financial statements for a service business and a merchandising business.
Service Business
A type of business that primarily offers intangible goods or services to consumers, such as consulting, legal advice, and maintenance services.
Merchandising Business
A type of business that makes profit by buying goods at a wholesale price and selling them at a retail price, primarily dealing in goods rather than services.
Financial Statements
Financial statements are records that provide an overview of a company's financial performance and position, typically including the balance sheet, income statement, and statement of cash flows.
- Describe how financial statement creation differs between service and merchandising companies.
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Learning Objectives
- Describe how financial statement creation differs between service and merchandising companies.
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