Question

At the start of the year northern lights had $8000 worth of merchandise. What do we know about northern lights?

A. The company ended with a net income last year

B. It’s a retail business

C. The company ended with a net loss last year

D. It’s a service business

Answer 1

B. It's a retail Business

Explanation:

Just by knowing that they have money worth in merchandise, you can say that they sell as a retail business, the first option A. is not posible because they dont have an income they just have inventory worth money. the C. is not possible because having $ 8000 positive value does not constitute loss and D. it's a service business, could be but the merchandise does not suffice all information.