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Trading vs Service Business
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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.
How would you describe a retailer?
A retailer sells goods in small quantities directly to the customer.
Is stationary and asset? Why or why not?
No. It is an expense because it is used up.
Give two examples of Owners Equity.
Various answers
Give two examples of liabilities.
Various answers
Give two examples of assets.
Various answers
Are you a consumer? Yes or No?
Yes
What is a trading business?
It sells a physical product to consumers.
What is a service business?
It sells services to consumers, not a physical product.
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.
What is the accounting equation?
A = L + OE


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