When a merchandising business is compared to a service business, the financial statement that is not affected by that change is the statement of owner's equity.

Question

Quizplus · Accepted Answer

The statement of owner's equity primarily reflects the changes in the owner's capital account over a period, including investments by the owner, withdrawals, and the business's net income or loss. These elements are not directly affected by the nature of the business (merchandising vs. service), as they relate to the owner's equity regardless of the type of operations.

When a Merchandising Business Is Compared to a Service Business