16RQ - Horngren'S Financial And Managerial Accounting

Question

Describe a service company, and give an example.

Step-by-Step Solution

Answer

Service company provides services to customers, examples are American express, hospitals, etc.

Definition of service company

The service companies are defined as the business organization which provides only services to the clients or the customers.

Example of service company

There are various examples of service companies and they  are: 

Banking: The banking services include various activities which are providing loans, managing various accounts of the depositors, and money transfers. Some of the banks are American Express, HDFC, etc.

Healthcare: Healthcare services are provided by the hospitals such as health check-ups, surgeries, etc.