Home › SAICA CA(SA) › Accounting › Merchandising Transactions › A firm of accountants sells advice rather than g…
A firm of accountants sells advice rather than goods, so it holds no:
AInventory
BInsurance
CInterest
DInvoices
Answer & Solution
Correct answer: A. Inventory
1. Service companies provide intangible services.
2. Nothing physical is bought in and resold.
3. So they hold no inventory.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
Related questions
A statement combining all revenues into one category and all expenses into another is:Advertising and office supplies costs, not tied to direct selling, are called:An income statement listing each revenue and expense account separately is called:Under FOB shipping point terms, the shipping charges are paid by the:Under FOB destination terms, the shipping charges are paid by the:On the choice between those two systems, accounting standards state a requirement that is:An inventory system updating the account only at scheduled times is:An inventory system updating the account on every single sale or purchase is: