About This Chapter
Overview of Service and Trading Businesses - Chapter Summary
In this chapter, you will learn about the different needs and processes related to trading and service businesses. You will find detailed examples and key definitions to help clarify the business concepts discussed in each of the lessons comprising this chapter.
You will review marketing processes, inventory management and accounting procedures relevant to the operations of both types of businesses. After completing your study of this chapter, you should be able to:
- Define and provide examples of trading and service businesses
- Explain the process of distributing products to consumers
- Relate documentation and processes in accounting for trade and service businesses
- Determine inventory using various cost flow assumption methods
- Describe how to make different balance day adjustments to accounting reports
Video and text lessons take only minutes to review and provide details through expert instruction to ensure you are getting the information you need to master each topic. You can access these lessons 24/7 from any device and ask instructors any lesson-specific questions using an easy online contact form. Measure your knowledge of each topic using self-assessment quizzes and track your progress through this chapter on your handy Dashboard.
1. Service & Trading Businesses: Definitions & Examples
Are you buying a new shirt or picking up a shirt from the dry cleaners? They're both businesses dealing with the same product but in different ways. In this lesson, you'll learn the difference between trade and service businesses.
2. Channel Members in Marketing: Definition & Overview
How do products get from a business to you? If you were to develop a product of your own, how would you distribute it to consumers? This lesson is designed to help you understand those options. After the lesson, you can test your knowledge with a quiz!
3. Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
This lesson introduces you to the cost flow assumption methods of specific identification: FIFO, LIFO, and weighted average. You will also learn how to compute inventory in a perpetual system using the methods of FIFO, LIFO, and weighted average.
4. Making Balance Day Adjustments to Accounting Reports
This lesson will explain balance day adjustments to accounting reports: When expenses and revenue are paid/received, we may need to adjust our books to reflect the update. Examples of journal entries will be provided.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Budgeting in Business
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards