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Trading vs Service Business
Game Code: 868231
English
11
Public
terms
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What is the accounting equation?
A = L + OE
15
What does a manufacturing business do?
It manufactures a product by combining materials to produce a product that is sold to other manufacturers, wholesalers and retailers.
15
What is a service business?
It sells services to consumers, not a physical product.
15
What is a trading business?
It sells a physical product to consumers.
15
Are you a consumer? Yes or No?
Yes
15
Give two examples of assets.
Various answers
15
Give two examples of liabilities.
Various answers
15
Give two examples of Owners Equity.
Various answers
15
Is stationary and asset? Why or why not?
No. It is an expense because it is used up.
15
How would you describe a retailer?
A retailer sells goods in small quantities directly to the customer.
15
How would you describe a wholesaler?
A wholesaler buys products in very large quantities from manufacturers and importers, and resells these products to other suppliers and retailers.
15
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