College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 12, Problem 3DQ
To determine
Indicate the basic classifications reported on the income statement for a merchandising business as compared to a service business.
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Check out a sample textbook solutionStudents have asked these similar questions
In the income statement of a merchandising business, why do you think we have to categorize expenses based on their nature or functions?
(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.
The main difference between the income statements of a merchandising and a service type business is:
A) the period covered by the statements.
the manner by which the revenues are presented.
the manner by which expenses are presented.
D the computation of net profit.
Chapter 12 Solutions
College Accounting (Book Only): A Career Approach
Ch. 12 - What is the term used for the profit on a sale...Ch. 12 - Which of the following is not an example of a...Ch. 12 - Prob. 3QYCh. 12 - What is the third entry of the closing procedure...Ch. 12 - What general journal entry is used to undo a...Ch. 12 - Prob. 1DQCh. 12 - What is the difference between the cost of goods...Ch. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Explain the calculation of net sales and net...Ch. 12 - Prob. 7DQCh. 12 - What are the rules for recognizing whether an...Ch. 12 - Prob. 9DQCh. 12 - Calculate the missing items in the following:Ch. 12 - Using the following information, prepare the Cost...Ch. 12 - Prob. 3ECh. 12 - The Income Statement columns of the August 31...Ch. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - From the following T accounts, journalize the...Ch. 12 - From the following information, journalize the...Ch. 12 - A partial work sheet for The Fan Shop is presented...Ch. 12 - Prob. 2PACh. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - A partial work sheet for McKnight Music Store is...Ch. 12 - Here is the partial work sheet for Meyer Mountain...Ch. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - Costco is the largest chain of membership...Ch. 12 - A music store sells new instruments. The store...Ch. 12 - You are an owner/bookkeeper in a country whose...Ch. 12 - Prob. 4ACh. 12 - Prob. 5ACh. 12 - Prob. 1CP
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Similar questions
- 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 profitarrow_forwardWhich 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 profitarrow_forwardHow does the Cost of goods sold section of the income statement differ between retail and manufacturing companies?arrow_forward
- Which of the following represents the components of the income statement for a manufacturing business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Service Revenue - Cost of Goods Manufactured = gross profit D. Sales Revenue - Cost of Goods Manufactured = gross profitarrow_forwardUsing the following information, prepare the Cost of Goods Sold section of an income statement.arrow_forwardExplain how the income statement of a manufacturing company differs from the income statement of a merchandising company.arrow_forward
- How does the format of the income statement for a manufacturing concern differ from the income statement of a merchandising business?arrow_forwardHow does reporting information for a merchandising company differ from financial reporting for a service organization?arrow_forwardWhat items appear in financial statements of merchandising companies but not in the statements of service companies?arrow_forward
- What is the differences between financial statements of a manufacturing and a merchandising business?arrow_forwardUnderstand the components of a merchandising company’s income statement.arrow_forwardHow is accounting for service businesses different than accounting for merchandising businesses?arrow_forward
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