Question

What is a difference between merchandising companies and service enterprises? a. Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements. b. Merchandising companies generally have a longer operating cycle than service enterprises. c. Cost of goods sold is an expense for service enterprises but not for merchandising companies. d. All these choices are differences.

Answer 1

Answer:

b. Merchandising companies generally have a longer operating cycle than service enterprises.

Explanation:

Merchandising store has a long run because they keep selling goods to customers and restocking them, they deal with tangible goods while services enterprise deals with consulting services and auditing services, they do not sell goods to customers.