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:

Intended

Something that is planned or meant to occur; deliberate.

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Widely held beliefs or generalizations about the attributes, characteristics, and behaviors of males and females, based on their sex.

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The combination of characteristics or qualities that form an individual's distinct character.

Rearing

The process of caring for and bringing up children or young animals, focusing on their health, education, and emotional development.