Which line item would be found on a merchandiser's balance sheet and not on a service firm's?
A)Supplies
B)Cost of Goods Sold
C)Inventory
D)Sales Revenue

Question

Quizplus · Accepted Answer

Service companies sell services to customers.Merchandising companies differ in that their cycle begins with buying products,which are sold to customers,which leads to collecting cash that can be used to pay operating expenses and buy more inventory.Merchandisers report Inventory on their balance sheets.

Which Line Item Would Be Found on a Merchandiser's Balance