(Answered) What is a difference between merchandising companies and

Engineering

What is a difference between merchandising companies and service enterprises?

Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.
Cost of goods sold is an expense for service enterprises but not for merchandising companies.
The operations in merchandising companies and service enterprises are identical.
Merchandising companies generally have a longer operating cycle than service enterprises.

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