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Which of the following would be missing in the accounting system of a service provider? a. finished goods ledger b. cost ledger c. job cost sheets d. deferred revenue account

Ask by Edwards Long. in the United States
Feb 10,2025

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A service provider would be missing the finished goods ledger.

Solución

A service provider typically does not handle physical inventory or manufacture tangible products. Therefore, it wouldn’t have a finished goods ledger, which is used to track the inventory of completed products ready for sale. The other items, such as cost ledger and job cost sheets, can be applicable in service operations for tracking expenses and specific job costs, while a deferred revenue account is used when payments are received in advance of providing the service. So, the correct answer is: a. finished goods ledger.

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Bonus Knowledge

A finished goods ledger would be missing in the accounting system of a service provider because they do not produce physical products to be stored as inventory. Instead, service providers focus on costs and revenues associated with the services they offer. On the other hand, a cost ledger, job cost sheets, and a deferred revenue account are relevant for service providers. These elements help track expenses incurred in delivering services, manage project costs, and account for payments received in advance for services yet to be performed.

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