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Types of Businesses a. Indicate whether each of the following companies is primarily a service, retail, 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. 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. Wal-mart Stores, Inc. b. For which of these businesses is the accounting equation relevant? Merchandise Manufacturing Service All of the above

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Answer:

a) Indicating whether the companies are a service, retail, or manufacturing business.

1. Alcoa Inc. : Manufacturing Business

2. Boeing : Manufacturing Business

3. Caterpillar : Manufacturing Business

4. Citigroup Inc. : Service Business

5. CVS : Retail Business

6. Dow Chemical Company : Manufacturing Business

7. eBay Inc. : Service Business

8. FedEx : Service Business

9. Ford Motor Company : Manufacturing Business

10. Gap Inc. : Retail business

11. H&R Block : Service Business

12. Hilton Hospitality, Inc. : Service Business

13. Procter & Gamble : Manufacturing Business

14. SunTrust : Service Business

15. Wal-mart Stores, Inc. : Retail business

b) The accounting equation serves as a foundational block for the accounting system of all companies therefore it is relevant to all businesses.

Explanation:
  • The explanation is as follows:

a) Indicating whether the companies are a service, retail, or manufacturing business.

1. Alcoa Inc. : Manufacturing Business

2. Boeing : Manufacturing Business

3. Caterpillar : Manufacturing Business

4. Citigroup Inc. : Service Business

5. CVS : Retail Business

6. Dow Chemical Company : Manufacturing Business

7. eBay Inc. : Service Business

8. FedEx : Service Business

9. Ford Motor Company : Manufacturing Business

10. Gap Inc. : Retail business

11. H&R Block : Service Business

12. Hilton Hospitality, Inc. : Service Business

13. Procter & Gamble : Manufacturing Business

14. SunTrust : Service Business

15. Wal-mart Stores, Inc. : Retail business

b) The accounting equation should be for all companies therefore it is relevant to all businesses.

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