Multiple Choice
Which of the following is classified as an equity account?
28
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following descriptions accurately describes resellers in the context of accounting?
A
Individuals or companies that provide professional accounting services to clients.
B
Entities that purchase finished goods and sell them to customers without significant alteration.
C
Nonprofit organizations that focus on providing services rather than selling goods.
D
Organizations that manufacture products from raw materials for sale to end users.
Verified step by step guidance1
Understand the term 'resellers' in the context of accounting. Resellers are entities that act as intermediaries in the supply chain by purchasing finished goods from manufacturers or wholesalers and selling them to end customers without making significant changes to the products.
Analyze the options provided in the question to identify the one that aligns with the definition of resellers.
Option 1: 'Individuals or companies that provide professional accounting services to clients' refers to accounting service providers, not resellers. Eliminate this option.
Option 3: 'Nonprofit organizations that focus on providing services rather than selling goods' describes nonprofit entities, which are not resellers. Eliminate this option.
Option 4: 'Organizations that manufacture products from raw materials for sale to end users' refers to manufacturers, not resellers. Eliminate this option. The correct description is Option 2: 'Entities that purchase finished goods and sell them to customers without significant alteration.'
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations