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Merchandising companies and service enterprises

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Reference no: EM131235166

What is a difference between merchandising companies and service enterprises?

  • Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.
  • Cost of goods sold is an expense for service enterprises but not for merchandising companies.
  • The operations in merchandising companies and service enterprises are identical.
  • Merchandising companies generally have a longer operating cycle than service enterprises.

Reference no: EM131235166

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