Multiple Choice
When setting up title sheets for financial statements, which of the following elements should always be included?
26
views
1. Introduction to Accounting
Welcome!
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Forten Company is a merchandiser. Which of the following best describes the primary activity of a merchandising company?
A
Manufacturing products from raw materials
B
Providing services to clients without selling physical goods
C
Purchasing finished goods for resale to customers
D
Investing in stocks and bonds for capital gains
Verified step by step guidance1
Understand the definition of a merchandising company: A merchandising company primarily purchases finished goods from suppliers and resells them to customers without altering the goods.
Compare the given options to the definition of a merchandising company: Evaluate each option to determine which aligns with the primary activity of purchasing finished goods for resale.
Option 1: 'Manufacturing products from raw materials' - This describes a manufacturing company, not a merchandising company.
Option 2: 'Providing services to clients without selling physical goods' - This describes a service company, not a merchandising company.
Option 3: 'Purchasing finished goods for resale to customers' - This matches the definition of a merchandising company and is the correct answer.
Related Videos
Related Practice
