What are the components of a merchandising business?
submitted by Akee R. Taweh

itstrue

From an accountant's perspective, a merchandising business usually has inventory (which includes goods purchased for resale), the cost of goods sold (which is the direct costs associated with making the thing you sell), sales revenue, and operating expenses (like selling, general bills, and administrative expenses).

You'd also see accounts receivable, accounts payable, and inventory management systems. You'd need those for the buying and selling activities.

nawforreal

A merchandising business mainly has products that it buys and then sells to customers. The key parts are the inventory (the stuff they sell), the money they make from sales, and the costs of buying that inventory. They also have expenses like rent and wages, plus things like accounts receivable (money owed to them) and accounts payable (money they owe).

laid_out

Inventory (what they sell)
Sales revenue (money from customers)
Cost of goods sold (cost of inventory sold)
Operating expenses (rent, wages, etc.)
Accounts receivable and payable
Inventory tracking systems