Main Activities of Trading Companies Are

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Main Activities of Trading Companies Are

Main Activities of Trading Companies Are

a. buy merchandise

b. make and sell merchandise

c. buy and sell merchandise

d. buying raw materials and making merchandise.

e. selling all kinds of merchandise

Answer :

 

So, the main activity of a trading company is c. buy and sell merchandise.

Let's Discuss the Problem of Trading Companies

Trading company is company whose activities are buying and reselling goods without first making changes to the goods

Trading Company Transactions

Transactions Transactions that are usually carried out by trading companies are as follows:

  1. Purchase goods on credit
  2. Buy items in cash
  3. Return of goods
  4. Get a purchase discount
  5. Pay or accept shipping costs purchase
  6. Selling goods on credit
  7. Sell items for cash
  8. Receive returns on goods sold
  9. Give a sales discount

Trading Company Accounting

Trading company accounting has the following characteristics:

  1. Use the merchandise inventory account.
  2. There is a calculation of the cost of goods sold. In trading companies, gross profit is obtained by finding the difference between net sales and cost of goods sold. To get net profit, gross profit is reduced by operating expenses.
  3. Income statements can use single step (direct) and multiple step (gradual) forms.

Question Details

Class : 12

Course : Economy

Chapter : 5. Compilation of the Accounting Cycle in Trading Companies

Keywords : trading company, main activity

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