Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry. To identify: The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:a. Existence of contingencies.b. Valuation of intangible assets.c. Estimated salvage values of fixed assets.d. Valuation of related party transactions.e. Completeness of accounts payable. is it a or e?

Correct answer need

Please give correct answer this financial accounting question

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Answer 6

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Answer 7

Chapter 5, Problem 1DQ

To determine

Concept Introduction:

Business can be of various types but broadly they are categorized in two types. The one who undertake sale the goods are knows as manufacturing or trading businesses and the one who provide the services are known as service industry.

To identify:

The items that will appear in the financial statements of merchandising company but not in the statements of service companies.

Answer 8

Expert Solution & Answer

Explanation of Solution

Solution:

The businesses can be different so as to their components of financial statements. The businesses can be of three different kinds. These are manufacturing, trading and the service industry.

Manufacturing industry is the business which is engaged in the production of goods. Trading industry is engaged in the selling of products already manufactured by someone and service industry is that business which is involved in providing services on the basis of their knowledge and know-how.

The following are the items that will appear in the financial statements of merchandising companies but not in the statements of service companies:

Cost of goods sold − Cost of goods sold is reported in the income statement of merchandising company. Since no goods are involved in the service industries, it will not be there in their income statement.
Purchase cost of material - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Changes in inventories - Since no goods are involved in service industries. Hence, it will not be there in the income statement of service industry.
Inventory − Value of inventory in hand is reported in the balance sheet of merchandising companies but not in the balance sheet of service industry.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - Prob. 3DQ Ch. 5 - Prob. 4DQ Ch. 5 - 5. How does a company that uses a perpetual...Ch. 5 - Prob. 6DQ Ch. 5 - What is the difference between a sales discount...Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - What is the difference between the single-step and...

Explanation of Solution

Want to see more full solutions like this?

Chapter 5 Solutions