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when comparing a retail business to a service business, the financial statement that changes the least is the a.statement of cash flows b.income statement c.balance sheet d.statement of stockholders' equity

Sagot :

When comparing a retail business to a service business, the financial statement that changes the least is the d. statement of stockholders' equity.

What distinguishes a sales company's financial statements from those of a service company?

The existence of inventory distinguishes a merchandising firm from a service-based one as their main distinction. Unlike service-based firms, which do not sell things to customers, retail enterprises do. This distinction must be reflected in the financial accounts of the companies, especially the income statements.

Both types of business models may employ staff, both may require equipment to operate, and both may have paying consumers who purchase goods or services. A merchandising company must keep inventory on hand, which is the major distinction between it and a service industry business.

To know more about financial statements, refer:

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