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Financial & Managerial Accounting 13th Edition by Carl Warren , James Reeve,Jonathan Duchac
Edition 13ISBN: 978-1285868776Financial & Managerial Accounting 13th Edition by Carl Warren , James Reeve,Jonathan Duchac
Edition 13ISBN: 978-1285868776 Exercise 1
Types of businesses
The following is a list of well-known companies:
1. Alcoa Inc.
2. Boeing
3. Caterpillar
4. Citigroup Inc.
5. CVS
6. Dow Chemical Company
7. eBay Inc.
8. FedEx
9. Ford Motor Company
10. Gap Inc.
11. H R Block
12. Hilton Hospitality, Inc.
13. Procter Gamble
14. SunTrust
15. Walmart Stores, Inc.
a. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company's home page or use the finance Web site of Yahoo (finance.yahoo.com).
b. For which of the preceding companies is the accounting equation relevant?
The following is a list of well-known companies:
1. Alcoa Inc.
2. Boeing
3. Caterpillar
4. Citigroup Inc.
5. CVS
6. Dow Chemical Company
7. eBay Inc.
8. FedEx
9. Ford Motor Company
10. Gap Inc.
11. H R Block
12. Hilton Hospitality, Inc.
13. Procter Gamble
14. SunTrust
15. Walmart Stores, Inc.
a. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company's home page or use the finance Web site of Yahoo (finance.yahoo.com).
b. For which of the preceding companies is the accounting equation relevant?
Explanation
Verified
Verified
a)There are three types of businesses operating for profit which include service, merchandising, and manufacturing businesses. Brief information about each type of business is given below-:
1. Service businesses -they provide services rather than products to customers.
2. Merchandising businesses - they sell products which they purchase from other businesses to customers.
3. Manufacturing businesses - they changes basic inputs into products that are sold to customers.
Table indicating the nature of business of each company -:
b)The accounting equation serves as the basic foundation for the accounting system of all the companies. From the smallest business, such as the local convenience store, to the largest business such as coca cola, all businesses use accounting equation.
1. Service businesses -they provide services rather than products to customers.
2. Merchandising businesses - they sell products which they purchase from other businesses to customers.
3. Manufacturing businesses - they changes basic inputs into products that are sold to customers.
Table indicating the nature of business of each company -:
b)The accounting equation serves as the basic foundation for the accounting system of all the companies. From the smallest business, such as the local convenience store, to the largest business such as coca cola, all businesses use accounting equation.
Financial & Managerial Accounting 13th Edition by Carl Warren , James Reeve,Jonathan Duchac
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