The balance sheet of a service-sector companies would show ________.
A) work-in-process inventory, and finished goods inventory accounts
B) only finished goods inventory
C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts
D) no inventory accounts

Question

Quizplus · Accepted Answer

Service-sector companies do not produce physical products, therefore they do not have inventory accounts. The balance sheet would instead show assets such as cash, accounts receivable, and equipment, as well as liabilities and equity.

The Balance Sheet of a Service-Sector Companies Would Show ________