Question

39. Which of the following would not be found in the accounting system of a service provider? a cost ledger b. finished goods ledger c. deferred revenue account d job cost sheets 40. When a job is completed in a service organization, the job costs are transferred to the a work in process account b. cost of services account 6. finished goods account d. cost of goods sold account

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

39)

A service provider does not deal in goods but in services. They incur cost in providing services and so a cost ledger should be there in their books of accounts. So, option a is not correct

A service provider does not deal in goods but in services and so finished goods ledger will not be there in their books of accounts and so option b is the correct option

Deferred revenue accounts and job cost sheets will be there in the books of a service provider as these may come up at the time of providing services. So, option c and d are not correct

So, as per above discussion, option b is the correct option