A Business That Purchases a Product from Another Business to Sell

question 12

Multiple Choice

A business that purchases a product from another business to sell to customers is called a

• A) service business.
• B) manufacturing business.
• C) merchandising business.
• D) nonprofit business.

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Definitions:

Supplies Expense

An accounting term referring to the cost of supplies consumed or used by a business within a reporting period.

Worksheet

An accounting tool used for planning and preparing financial statements, typically including trial balance, adjusting entries, adjusted trial balance, and financial statements.

Depreciation Expense

The systematic allocation of the depreciable amount of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Salaries and Wages Expense

Salaries and wages expense refers to the total amount paid by a business for employee services during a specific period, including salaries, hourly wages, and bonuses.