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3achapter5 - Financial Accounting 1 11 Tools for Business...

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1 5-1 Financial Accounting: Tools for Business Decision Making, 4th Ed. Kimmel, Weygandt, Kieso CHAPTER 5 5-2 Differences Between a Service Company and a Merchandising Company Primary Source of Revenue Service Company- performs services Barber, electrician, plumber, attorney, CPA Merchandise Company- sale of merchandise Cars, clothing, food, office supplies 11 1 Income Measurement for Merchandise Companies Total cost of merchandise sold during the period Selling and Administrative Operating Cycles
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