Asked by Jessica Guerrero on Jul 24, 2024
Verified
As we compare a merchandising business to a service business, the financial statement that changes the most is the balance sheet.
Merchandising Business
A business that purchases finished goods for resale, typically at a profit, engaging in buying and selling without altering the form of the goods.
Service Business
An enterprise offering non-physical goods or services to its clientele.
- Understand the structure and elements of balance sheet presentation formats.
Verified Answer
DW
Dylan WalterJul 31, 2024
Final Answer :
False
Explanation :
The income statement is the financial statement that changes the most in a comparison between a merchandising business and a service business, as these two types of businesses have different cost structures and revenue streams. The balance sheet may also show some differences, but not as significant as the income statement.
Learning Objectives
- Understand the structure and elements of balance sheet presentation formats.
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