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 (http://finance .yahoo.com).

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

Answer:
a.
1. manufacturing    6. manufacturing    11. service
2. manufacturing    7. service          12. service
3. manufacturing    8. service          13. manufacturing
4. service          9. manufacturing    14. service
5. merchandise     10. merchandise      15. merchandise

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