Two Accounts That Appear on the Financial Statements of a Merchandising

question 92

Multiple Choice

Two accounts that appear on the financial statements of a merchandising company but are not needed by a service company are:

• A)cost of goods sold and depreciation.
• B)cost of goods sold and net income.
• C)cost of goods sold and inventory.
• D)inventory and depreciation.

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Definitions:

Government-Run

Entities, operations, or programs managed and operated by a government entity or its agents.

External Cost

Spillover effects that reduce the well-being of non-consenting parties.

Economic Efficiency

A condition in which resources are distributed to optimize the generation of goods and services.

Competitive Private Market

A market structure where multiple firms compete against each other under minimal governmental intervention, offering goods and services to consumers.