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

Question

Quizplus · Accepted Answer

Inventory would be found on a merchandiser's balance sheet, as it represents the goods that are being held for sale to customers. A service firm, on the other hand, would not have inventory because they do not sell physical products. Supplies could potentially be found on both a merchandiser's and service firm's balance sheet, while Cost of Goods Sold would only be found on a merchandiser's balance sheet as it represents the direct costs associated with the goods sold.

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