Chapter#2B: Types of Business Organizations Flashcards Preview

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Flashcards in Chapter#2B: Types of Business Organizations Deck (9)
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What is a Service Company?

is a business that offers services to the public


What Account does a service business not have?

Purchase account and no inventory is recorded


What is a Merchandising business?

purchases products from it's vendors for resale to its customers


What must a merchandising business prepare?

it will include a section called the cost of Good's sold


What is a Manufacturing Organization

they transform raw materials into finished goods for sale.


What are the three types of inventory

Raw material inventory
Work in process inventory
Finished goods inventory


What is Raw Material Inventory

includes the costs of various items used to produce the goods made by the organization


What is Work in Process Inventory?

includes all the costs of all products being made by a company that are not yet complete and ready to sell


What is Finished Goods Inventory?

Includes the costs of all goods that are complete and ready for sale