ACC 225 WEEK 5 DQ 1 - because they have few receivables and...

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Week 5 Discussion Question 1 · Due Date: Day 2 [Main] forum · Post your response to the following: Find the financial statements of a service company and of a merchandising company: http://highered.mcgrawhill. com/sites/0072512431/student_view0/chapter1/text_company_links.html What items appear on the merchandising company statements that don’t appear on the service company statements? Why is there a difference?
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Items that would appear on merchandising statements and not on services rendered statements are: Sales Sales discounts Sales returns and allowances Merchandise inventory Cost of merchandise sold Selling expenses Some small business owners like doctors, lawyers and real estate brokers may use the cash basis of accounting 
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Unformatted text preview: because they have few receivables and payable's and their statements results are similar to the accrual basis. And, many service related businesses use receivables and payable's. Receivables and payable's are NOT a distinguishing factor between merchandising and service related. The difference in a merchandising and service related businesses is that in merchandising you're selling product, and in service related you're providing a service....
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ACC 225 WEEK 5 DQ 1 - because they have few receivables and...

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