Task Sheet #1 Background Knowledge Probe
REMIND YOURSELF OF THE IMPORTANT MATTERS
09.24.16
We are task to differentiate service business to merchandising business.
According to Business Dictionary, service business provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.
According to Win Ballada, a CPA and MBA, merchandising entity purchases inventory, sells the inventory and uses the cash to purchase more inventory-and the cycle continues. For cash sales, the cycle is from cash to inventory back to cash. For sales on account, the cycle is from cash to inventory accounts receivable and back to cash. In any industry, the manager strives to shorten the cycle. The faster the cycle of inventory and the collections of cash, the higher the profits.
16/20 When I was answering this task sheet, I tried to remember the concepts of service business because I somehow forgot it. But still, I ended up answering what had been refreshed earlier in the class which is the periodicity assumption and business entity concept which were both present in the two given types of business. I've got that score because I didn't put examples to service and merchandising business.
I learned that I should have shown examples for it to become more comprehensive and true. Like in real life, our words should have something to do and should be related to our actions because it will serve as proof of our oral impediments.
