Manufacturing Businesses Have Inventory Accounts, but Service and Merchandising Businesses

question 88

True/False

Manufacturing businesses have inventory accounts, but service and merchandising businesses do not.

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Definitions:

Other Income/Expense

Gains or losses from non-operational activities, distinct from the core business operations’ revenues and expenses.

Gain

The profit realized from the sale of assets or investments for more than their original purchase price.

Sale of Equipment

A transaction involving the disposal of machinery or other equipment used in business operations, typically recorded as a gain or loss.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.