11) The earnings statement of a organization agency will the majority of likely encompass ________.
You are watching: The income statement of a service company will most likely include ________.
A) salary expense
B) factory overhead
C) expense of items sold
D) direct materials
12) Which of the adhering to is true of business companies?
A) All expenses of company providers are product costs.
B) Service service providers modify and also reoffer commodities they buy from manufacturers.
C) Revenues of company suppliers are only recorded on cash receipt.
D) Service service providers lug no inventories of products for sale.
13) For a production firm, which of the adhering to is a duration cost?
A) direct materials
B) office rent
C) wages price of manufacturing facility workers
D) instraight materials
14) One of the main tasks of Rex Inc. is to purchase hats from Viva Inc. in Texas and also market them to its customers in Washington for a profit. It is most likely that Rex is a ________.
A) manufacturing company
B) hybrid company
C) organization company
D) merchandising company
15) Which of the adhering to is most likely a service company?
A) a regulation firm
B) a car dealership
C) a grocery store
D) a patisserie
16) A agency that provides labor, tools, supplies, and framework to convert raw materials into finiburned assets is a ________.
A) merchandising company
B) manufacturing company
C) service company
D) trading company
17) Goods that have actually been began in the manufacturing process however are not yet complete are consisted of in the ________.
A) Finimelted Goods Inventory account
B) Work-in-Process Inventory account
C) Raw Materials Inventory account
D) Cost of Goods Sold account.
18) Which of the adhering to would certainly appear as a line item on the earnings statements of both, a merchandiser and a manufacturer?
A) Direct labor
B) Cost of products manufactured
C) Direct materials
D) Cost of products sold
19) Damsel Inc. is a huge manufacturer of auto tires. Damsel has provided the following information:
Beginning Finished Goods Inventory
Cost of Goods Sold
Cost of Goods Manufactured
Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.
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20) The balance sheet of a ________ firm will show Work-in-Process Inventory as a line item.