Name 2 (two) differences between accounting for a service company and a retail shop.
What will be an ideal response?
Differences between a service company and a merchandising company (retail shop) could include the following:
A merchandising company tracks inventory and cost of goods sold, while a service company tracks services and hours per project.
The accounts in the Chart of Accounts can vary for a service company versus a merchandising company. For example, a retail shop uses the Inventory account while typically a service company does not.
A merchandising company must collect and account for sales taxes payable. Typically, a service company does not collect sales taxes on services.
You might also like to view...
The popular music talent show, American Idol, has been generally acknowledged as the most profitable TV series in U.S. history, in terms of advertising and merchandising revenue
Major sponsors of the show include Coca-Cola, AT&T Wireless, and iTunes, among many others. Cups bearing the logo of Coca-Cola were a prominent prop found on the show's judges' tables. The show also urged viewers to vote for contestants using AT&T sms services. Contestants were routinely shown rehearsing for their performances with the help of Apple iPods. Which of the following advertising practices is apparent in this example? A) ambush advertising B) product placement C) angel dusting D) co-branding E) subliminal advertising
________ is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world
A) Consumption B) Perception C) Acculturation D) Assimilation E) Cognitive dissonance
Which of the following would not be needed to determine net cash provided by operating activities?
A) depreciation expense. B) change in accounts receivable. C) payment of cash dividends. D) change in prepaid expenses.
What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?
A. licensing B. joint venture C. direct investment D. cooperative E. direct exporting