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    Accounting cycle for a merchandising firm vs service firm

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    Do the steps in a merchandising firm's accounting cycle tend to be more condensed?

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    Is the Accounting cycle for a merchandising firm more condensed than that of a service firm?

    You should start by defining the merchandising firm and the service firm:
    1. For example, make it clear that the merchandising firm purchases items from whole sales and then sells items to customers. Merchandising firms do not manufacture goods but rather they purchase goods that are ready to be sold to consumers.
    2. A service firm spends time providing a service to clients rather than selling a product.

    Basically all firms, ...

    Solution Summary

    The Accounting cycle for a merchandising firm more condensed than that of a service firm is determined.

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