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Which Two Broad Account Categories Are Used to Determine Net

question 140

Essay

Which two broad account categories are used to determine net income? Define each category and list two examples of each type.


Definitions:

Merchant

A person or business that sells goods or services to consumers.

Consumer Goods

Products and services that are purchased or consumed by individuals or households for personal use.

Implied Warranty Of Fitness

An assurance, not explicitly stated, that the goods sold will be suitable for the purpose for which the buyer intends to use them.

Express Warranty

An explicit guarantee made by a seller about the condition, quality, or performance of a product, forming part of the contract of sale.

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