The main difference between the current assets on the balance sheet of a service company and a manufacturer is that a manufacturer has
A)inventory and a service company does not.
B)cost of goods sold and a service company does not.
C)accounts receivable and a service company does not.
D)accounts payable and a service company does not.

Question

Quizplus · Accepted Answer

A manufacturer will have inventory as a current asset, which a service company will not have as they do not produce goods. The other options (B, C, D) are not correct, as both service companies and manufacturers can have cost of goods sold, accounts receivable, and accounts payable.

The Main Difference Between the Current Assets on the Balance