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.

Question

Quizplus · Accepted Answer

The Answer of 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.

The Income Statements and Balance Sheets of Service, Retailing, and Manufacturing