O Level Accounting (7707)•7707/12/M/J/23

Explanation
Distinguishing service businesses from retail
Steps:
- Define service business: provides intangible services like education, advice, or repairs, without selling physical goods.
- Examine each option: identify if all items offer services only, excluding retail sales.
- Eliminate options with retail elements: book shops, newsagents, and food stores sell products.
- Confirm the option where all are pure services: education, tax advice, and repairs.
Why C is correct:
- Language school, tax firm, and jewellery repair all deliver intangible services (teaching, financial advice, fixing items), aligning with the economic definition of service sector businesses.
Why the others are wrong:
- A: Book shop and newsagent sell physical goods, not services.
- B: Food store sells products, not services.
- D: Newsagent and food store sell goods, not services.
Final answer: C
Topic: The purpose of accounting
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