A chart of accounts for a merchandising business

A) usually is the same as the chart of accounts for a service business
B) usually requires more accounts than does the chart of accounts for a service business
C) usually is standardized by the FASB for all merchandising businesses
D) always uses a three-digit numbering system

A merchandising business involves the buying and selling of goods, which requires more accounts than a service business. A merchandising business may need separate accounts for inventory, cost of goods sold, and sales revenue. The chart of accounts will vary depending on the specific needs of the business and is not standardized by the FASB. While some businesses may use a three-digit numbering system, this is not required for all merchandising businesses.