What Is a Difference Between Merchandising Companies and Service Enterprises

Multiple Choice

What is a difference between merchandising companies and service enterprises?

A) Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.
B) Merchandising companies generally have a longer operating cycle than service enterprises.
C) Cost of goods sold is an expense for service enterprises but not for merchandising companies.
D) All are differences.