ACC 557 Week 4 Discussion 1

ACC 557 Week 4 Discussion 1 - would have to open to...

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Week 4 Discussion 1 The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company. Discuss whether or not you agree or disagree. Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company. The steps in the accounting cycle for a merchandising company are different from the accounting cycle for a service company. Discuss whether or not you agree or disagree. I would like to agree that the steps that are in the accounting cycle for any merchandising company would be way more different than the accounting cycle for any kind of Service Company. When it comes to the merchandising business, accounting is more emphasized on because of that nature of business and the multiple accounts you
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Unformatted text preview: would have to open to purchase selective inventory, payroll, staffing, space, etc. . Even though the balance sheet and inventory play a big role in merchandising companies, the balance would be used to categorize the merchandise that is in inventory and the Income statement is used to categorize inventory like gross profits, how much the cost of goods would beetc Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company. I believe that the measurement of net income for any merchandising company would not be the same for a service company. I say this because the gross profit is designed in to the Income Statement of a merchandising company where the expenses can be taken out the sow up in the net income balance...
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