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Business

Accounting

Difference in the income statement of a service and a merchandising business

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2Q: Explain how the income statement of a manufacturing company differs from the income statement of a...

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1. Difference in the income statement of a service and a merchandising business

2. Operating cycle of a merchandising business

3. Source documents used in a merchandising business

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Which of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
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