Describe the major differences in preparing the financial statements for a service business and a merchandising business. Service Business Merchandising Business Income Statement: Income Statement: Balance Sheet: Balance Sheet: \begin{array}{|l|l|l|}\hline extbf { Service Business } & & extbf { Merchandising Business } \\hline ext { Income Statement: } & & ext { Income Statement: } \\hline\\hline ext { Balance Sheet: } & & ext { Balance Sheet: } \\hline\\hline\end{array} Service Business Income Statement: Balance Sheet: Merchandising Business Income Statement: Balance Sheet:

Question

Describe the major differences in preparing the financial statements for a service business and a merchandising business.     Service   Business     Merchandising   Business    Income Statement:   Income Statement:   Balance Sheet:   Balance Sheet:  \begin{array}{|l|l|l|}\hline 	extbf { Service Business }  & &  	extbf { Merchandising Business } \\hline 	ext { Income Statement: }  & &  	ext { Income Statement: } \\hline\\hline 	ext { Balance Sheet: }  & & 	ext { Balance Sheet: } \\hline\\hline\end{array}  Service Business   Income Statement:   Balance Sheet:  ​ ​  Merchandising Business   Income Statement:   Balance Sheet:  ​ ​

ninie rashid · Accepted Answer

Final Answer :  ?     Service   Business     Merchandising   Business    Income Statement:   Income Statement:   Revenues   Less operating expenses  ‾  Equals operating income   Sales   Less cost of merchandise sold   Equals gross pro fit   Less operating expenses   Equals operating income   Balance Sheet:   Balance Sheet:   No merchandise inventory   account   Includes merchandise inventory   account in the current assets   section  \begin{array}{|l|l|l|}\hline 	extbf { Service Business }  & &  	extbf { Merchandising Business } \\hline 	ext { Income Statement: }  & &  	ext { Income Statement: } \\hline \begin{array}{l}	ext { Revenues } \\underline{	ext { Less operating expenses }} \	ext { Equals operating income }\end{array}  & &  \begin{array}{l}	ext { Sales } \	ext { Less cost of merchandise sold } \	ext { Equals gross pro fit } \	ext { Less operating expenses } \	ext { Equals operating income }\end{array} \\hline  &  \\hline 	ext { Balance Sheet: }  & &  	ext { Balance Sheet: } \\hline \begin{array}{l}	ext { No merchandise inventory } \	ext { account }\end{array}  & &  \begin{array}{l}	ext { Includes merchandise inventory } \	ext { account in the current assets } \	ext { section }\end{array} \\hline  &  \\hline\end{array}  Service Business   Income Statement:   Revenues   Less operating expenses  ​  Equals operating income  ​  Balance Sheet:   No merchandise inventory   account  ​ ​ ​  Merchandising Business   Income Statement:   Sales   Less cost of merchandise sold   Equals gross pro fit   Less operating expenses   Equals operating income  ​  Balance Sheet:   Includes merchandise inventory   account in the current assets   section  ​ ​ ​

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