Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

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


Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.