Identify the companies which record revenues when selling inventory.

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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 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

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A business started the year with inventory worth $35,000. During the year, it purchased additional inventory for $150,000 and ended the year with inventory valued at $42,000. What was the cost of goods sold for the year?

Given solution for General accounting question not use ai

Granada Company uses the weighted-average method in its process costing system. The first processing department, the Mixing Department, started the month with 20,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $32,000. An additional 100,000 units were started into production during the month and 95,000 units were completed in the Mixing Department and transferred to the next processing department. There were 25,000 units in the ending work-in-process inventory of the Mixing Department that were 30% complete with respect to conversion costs. A total of $518,000 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? A. $4.89 B. $5.37 C. $4.75 D. $6.21

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 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

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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 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

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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 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

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

Answer 5

Chapter 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

Answer 6

Chapter 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.

Answer 7

Chapter 6, Problem 1SSQ

To determine

Identify the companies which record revenues when selling inventory.

Answer 8

Expert Solution & Answer

Explanation of Solution

Service businesses: Service companies involve in selling services, collecting cash for the services performed, and pay off the operating expenses. Hence, inventory is not included, and inventory is not reported on the balance sheet.

Manufacturing businesses: This is a business that buys raw materials, processes those to make finished goods, and sells those goods to customers.

Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers, and sell to retailers are referred to as merchandising businesses. These companies act as middlemen between manufacturing and retailing companies.

From the above explanation it is clear that service companies involve in selling services, whereas, manufacturing companies and merchandising companies involve in selling the inventories. Therefore, both manufacturing companies and merchandising companies record revenues when selling inventory.

Hence, the correct answer is option d. Both manufacturing and merchandising companies.