Partial Income Statements of Company a and Company B Are

question 1

Multiple Choice

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

---

Definitions:

Great Pain

Refers to intense or severe discomfort or suffering, either physically or emotionally.

Stratum Basale

The deepest layer of the epidermis of the skin.

Epidermis

The outermost layer of skin, providing a waterproof barrier and creating our skin tone, playing a crucial role in protecting the body.

Cells

The basic building blocks of all living organisms, capable of performing the essential functions of life.