EX 1-1 Types of businesses

The following is a list of well-known companies:

1. Alcoa Inc.

2. Boeing

3. Caterpillar

4. Citigroup Inc.

5. CVS

6. Dow Chemical Company

7. eBay Inc.

8. FedEx

 9. Ford Motor Company

10. Gap Inc.

11. H&R Block

12. Hilton Hospitality, Inc.

13. Procter & Gamble

14. SunTrust

15. Walmart Stores, Inc.

a. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company’s home page or use the finance Web site of Yahoo (finance.yahoo.com).

b. For which of the preceding companies is the accounting equation relevant?

Answer:

a. 

1. manufacturing

2. manufacturing

3. manufacturing

4. service

5. merchandise

6. manufacturing

7. service 

8. service

9. manufacturing

10. merchandise

11. service 

12. service

13. manufacturing 

14. service 

15. merchandise

b. The accounting equation is relevant to all companies. It serves as the basis of the accounting information system.