Describe the Major Differences in Preparing the Financial Statements for a Service

question 57

Essay

Describe the major differences in preparing the financial statements for a service business and a merchandising business.

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Definitions:

Manifest Function

The intended and recognized outcome of a social process or institution.

Latent Function

Unintended or unrecognized consequences of an institution, action, or social process that may not have been explicitly acknowledged.

Dysfunctional Function

A paradoxical term often used to describe societal practices or institutions that persist despite having negative effects on the social system.

Contributing Function

A role or activity that plays a part in achieving a larger purpose or result.