Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Which of the following best explains the preparation of a statement of owner's equity for a service business and the statement of owner's equity for a merchandising business?

A. Only a merchandising business includes ending capital.
B. Both types of business prepare the statement the same way.
C. Only a service business includes net income and beginning capital.
D. Neither type of business includes owner withdrawals.

Sagot :

GinnyAnswer

Final answer:

The preparation of owner's equity statements varies between service and merchandising businesses.


Explanation:

Service Business: The statement of owner's equity for a service business typically includes net income and beginning capital.

Merchandising Business: In contrast, the statement of owner's equity for a merchandising business may include ending capital due to inventory considerations.

Hence, the preparation of these statements differs based on the nature of the business.


Learn more about Owner's equity statements for service and merchandising businesses here:

https://brainly.com/question/29346581


We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.