Fairlawn Partners Consulting is a management-consulting firm that provides its expertise to businesses that employ its services. Since it does not hold an inventory of goods or produce any goods itself
A) its revenue will equal its net income.
B) its gross profit could be identical to its net revenue.
C) it is unlikely to have any operating expenses.
D) its balance sheet will not record any current assets.

Question

Quizplus · Accepted Answer

In a service firm, there may be no cost of goods sold. In this case, there is no difference between net revenue and gross profit.

Fairlawn Partners Consulting Is a Management-Consulting Firm That Provides Its