Which of the following accounts will only be found in the chart of accounts of a merchandising company? a. Accounts Payable b. Accounts Receivable c. Inventory d. Sales

The answer is C. Inventory

Explanation:

Meerchandising company is a company that buys goods (inventories) and resells them later at a price higher than the purchase price.

We have two types of merchandising companies:

1. Retail

2. Wholesale.

Since they buy and sells inventories (goods), only inventory accounts can be found in the chart of accounts among those options.

c. Inventory

Explanation:

A merchandising company is one that specialises in buying and reselling goods. Profit is made by selling goods at higher prices than they were bought.

Merchandising companies can be wholesale or retail businesses.

Because of the nature of their business merchandising companies usually make use of storage facilities to stock goods. This nesecitates the use of an inventory account to monitor inflow and outflow of goods.

Therefore inventory account is used only by merchandising companies