When Comparing the Financial Reporting for Service Providers and Merchandisers

Multiple Choice

When comparing the financial reporting for service providers and merchandisers, which of the following statements is correct regarding these two business entities?

A) Operating expenses are significantly different between service providers and merchandisers.
B) Merchandisers report merchandise inventory and cost of goods sold but service providers usually do not.
C) Both business entities report cost of goods sold, but only merchandisers report merchandise inventory.
D) Both business entities report merchandise inventory but only merchandisers report cost of goods sold.