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01.07.2022 - 19:32

What items appear in financial statements of merchandising companies, but not in the statements of service companies?

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What items appear in financial statements of merchandising companies, but not in the statements of service companies?

Answers (1)

Malani April 3, 2023 в 07:00

Inventory appears in financial statements of merchandising companies but not in the statements of service companies. Merchandising companies buy and sell goods and maintain inventory as a significant part of their operations, so they need to report the value of their inventory in their financial statements. Service companies, on the other hand, offer services and do not have inventory. Therefore, they do not need to report inventory in their financial statements.

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