Trading vs Service Business | Baamboozle - Baamboozle

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What is the accounting equation?

A = L + OE

Give two examples of Owners Equity.

Various answers

Are you a consumer? Yes or No?

Yes

How would you describe a retailer?

A retailer sells goods in small quantities directly to the customer.

Give two examples of assets.

Various answers

How would you describe a wholesaler?

A wholesaler buys products in very large quantities from manufacturers and importers, and resells these products to other suppliers and retailers.

What is a trading business?

It sells a physical product to consumers.

Is stationary and asset? Why or why not?

No. It is an expense because it is used up.

Give two examples of liabilities.

Various answers

What is a service business?

It sells services to consumers, not a physical product.

What does a manufacturing business do?

It manufactures a product by combining materials to produce a product that is sold to other manufacturers, wholesalers and retailers.