Partial Income Statements of Company a and Company B Are

question 120

Multiple Choice

Partial income statements of Company A and Company B are provided below: $$\begin{array}{l}\begin{array} { | l r r | } \hline { \text { Company A } } \\\hline & & \\\text { Revenue } && \$ 80,000 \\\text { Expenses: } & \$ 5,000 & \\\text { Utilities Expense } & 15,500 & \\\text { Salaries Expense } & \underline{3,200} & \\\text { Rent Expense } & & \underline{23,700} \\ \text { Total Expenses } & &\underline{ \$ 56,300} \\\hline\end{array}\\\\\begin{array} { | l r r | } \hline { \text { Company B } } & \\\hline & & \\\text { Revenue } && \$ 50,000 \\\text { Cost of Goods Sold: } & & \\\text { Beginning Inventory } & \$ 4,000 & \\\text { Purchases and Freight In } & 23,000 & \\\text { Ending Inventory } &\underline{ - 5,500 }& \\ \text { Cost of Goods Sold } & & \underline{21,500} \\ \text { Gross Profit } & & \underline{\$ 28,500} \\\hline\end{array}\end{array}$$ Which of the following statements is true?

• A) Company A is a merchandising company.
• B) Company B is a manufacturing company.
• C) Company A is a manufacturing company.
• D) Company A is a service company.

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Definitions:

Nontraditional Places

signifies unconventional or unusual locations or venues that deviate from the norm.

Restaurants

Restaurants are establishments where meals are prepared and served to customers in exchange for money.

Schools

Institutions dedicated to education and learning, ranging from primary to higher education, where academic, social, and physical skills are developed.

Professional Organizations

Groups or associations formed to support the interests and professional development of members in specific occupations or fields.