Indicate whether each of the following is typical of a service organization (SER), a retail organization (RET),

Question:

Indicate whether each of the following is typical of a service organization (SER), a retail organization (RET), or a manufacturing organization (MANF):

1. Maintains only one balance sheet inventory account

2. Maintains no balance sheet inventory accounts

3. Maintains three balance sheet inventory accounts

4. Purchases products ready for resale

5. Designs and makes products for sale

6. Sells services

7. Determines the net cost of services sold

8. Includes the cost of goods manufactured in calculating cost of goods sold

9. Includes the net cost of purchases in calculating cost of goods sold

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...