When Comparing Balance Sheets, Which Type of Company Has an Inventory

question 2

Multiple Choice

When comparing balance sheets, which type of company has an inventory of work-in-process services?

• A) Manufacturing firm
• B) Service firm
• C) Merchandising firm
• D) All of these have an inventory of work-in-process services

---

Definitions:

Subsidiary Ledgers

Detailed ledgers that provide a breakdown of individual accounts that are summarized in the general ledger.

Customers Ledger

A subsidiary ledger containing individual accounts for customers, showing each customer's sales, payments, returns, and the current balance owed.

Creditors Ledger

A ledger that keeps records of the amounts owed by the business to its suppliers or creditors.

Revenue Journal

This is an accounting journal that records all the sales transactions of a company where revenue is recognized, detailing the amount and source of each sale.