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The steps for the accounting cycle for a merchandising company differ from the steps in the accounting cycle for a service enterprise?
Some of the steps may change.
A merchandising company sells products, therefore the will have to consider the cost of goods sold, etc to find their net profit.
A service company provides a service, therefore they won't have a cost of goods sold account, but instead figure supply expense.
For the most part the steps will be either the same or very similar, however, accounts used will change.
What else can I help you with?
How do components of revenue and expenses differ between a merchandising company and a service enterprise?
Merchandising Companies purchase and sell directly and is ordinarily longer than a service company because of the inventory and its eventual sale lengthen the cycle, which differ merchandising and service companies.
What are the types of Business Operation in Accounting?
1.)service 2.)merchandising,/ trading 3.)manufacturing
Merchandising and service company have gross profit?
do some research
1 In comparing the accounts of a merchandising company with those of a service company what additional accounts would the merchandising company likely use assuming it employs a perpetual inventory?
Cost of goods sold and Gross profit
How does merchandising businesses differ from service businesses when it comes to accounting?
A merchandising business sells products to customers, whereas a service business provides or sells services to customers. For example: A beauty salon is considered a service business because you are providing a service to the customers. in the case of a beauty salon, the service could be cutting hair, doing someones eyebrows, etc. A sports store such as Sports Mart is considered a merchandising business because you are selling products to customers. in this case the products could be shoes, hockey sticks, etc. Merchandising business has inventory.
How do components of revenue and expenses differ between a merchandising company and a service enterprise?
Merchandising Companies purchase and sell directly and is ordinarily longer than a service company because of the inventory and its eventual sale lengthen the cycle, which differ merchandising and service companies.
Why is the normal operating cycle for a merchandising company likely to be longer than for a service company?
Why is the normal operating cycle for a merchandising company likely to be longer than for a service company?
What are the types of Business Operation in Accounting?
1.)service 2.)merchandising,/ trading 3.)manufacturing
Merchandising and service company have gross profit?
do some research
Is Publix supermarkets a merchandising company service company or manufacturing company?
Publix is a retail merchandiser.
1 In comparing the accounts of a merchandising company with those of a service company what additional accounts would the merchandising company likely use assuming it employs a perpetual inventory?
Cost of goods sold and Gross profit
Accounting is a service function?
Yes, Accounting would be a service function. A service is any business that provides a well "service".There are 2 main types of business, Merchandising, where a business sells a product, such as Wal-Mart, Target, a local resteraunt.Service, where the company is in business to provide a service, Accounting, Dry Cleaning, Landscaping.Since accounting would be the provision of an Accounting Service, then it would be a service business.
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Is the measurement of net income for a merchandising company conceptually the same as for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Is the measure of net income for a merchandising company conceptually the same for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
How does merchandising businesses differ from service businesses when it comes to accounting?
A merchandising business sells products to customers, whereas a service business provides or sells services to customers. For example: A beauty salon is considered a service business because you are providing a service to the customers. in the case of a beauty salon, the service could be cutting hair, doing someones eyebrows, etc. A sports store such as Sports Mart is considered a merchandising business because you are selling products to customers. in this case the products could be shoes, hockey sticks, etc. Merchandising business has inventory.
What company does E. James Ferland work for?
Public Service Enterprise Group
