The income statements and balance sheets of service, retailing, and manufacturing businesses tend to differ.Required:A. Which of these businesses will disclose a cost-of-goods-sold figure on the income statement? Why?B. Briefly describe the difference between a retailing firm and a manufacturer's disclosure of inventories on the balance sheet.
What will be an ideal response?
A. Retailers and manufacturers will disclose a cost-of-goods-sold figure because both of these entities sell goods. Service businesses, in contrast, do not, given that such firms provide services.
B. A retailer will typically disclose inventories as a one-line item entitled merchandise inventories. Manufacturers, on the other hand, carry three different types of inventories: raw materials, work in process, and finished goods.
You might also like to view...
On January 1, 2016, the long-term liability section of Quick Silver Co balance sheet showed a balance of $800,000 in the bonds payable account. On December 31, 2016, the balance in that same account was $765,000 . This change would appear on the statement of cash flows as
a. an outflow of cash of $35,000 in the financing activities category. b. an inflow of cash of $35,000 in the financing activities category. c. an outflow of cash of $35,000 in the investing activities category. d. an inflow of cash of $35,000 in the investing activities category.
Which of the following items will NOT appear as deductions on a bank statement?
A) NSF checks B) EFT C) Service Charge D) Deposits
Under Title VII, the federal government has exclusive authority over employment discrimination issues.?
Indicate whether the statement is true or false
Sovereign Immunity. George Janini and other former professors and employees of Ku-wait University (the plaintiffs) were terminated from their positions following Iraq's invasion of Kuwait in August 1990. Following the invasion, the government of Kuwait
issued a decree stat-ing, among other things, that "contracts concluded between the Government and those non-Kuwaiti workers who worked for it . . . shall be considered automatically abrogated because of the impossibility of enforcement due to the Iraqi invasion." The plaintiffs sued Kuwait University in a U.S. court, alleging that their termination breached their employment contracts, which re-quired nine months' notice before termination. The plaintiffs sought back pay and other benefits to which they were entitled under their contracts. The university claimed that, as a government-operated institution, it was immune from the jurisdiction of U.S. courts under the doctrine of sovereign immunity. What exceptions are made to this doctrine? Will an exception apply to the university's activities with respect to the plaintiffs? Discuss fully.