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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1

What is a Service Company?

is a business that offers services to the public

2

What Account does a service business not have?

Purchase account and no inventory is recorded

3

What is a Merchandising business?

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

4

What must a merchandising business prepare?

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

5

What is a Manufacturing Organization

they transform raw materials into finished goods for sale.

6

What are the three types of inventory

Raw material inventory
Work in process inventory
Finished goods inventory

7

What is Raw Material Inventory

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

8

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

9

What is Finished Goods Inventory?

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