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

Question

Quizplus · Accepted Answer

The statement of stockholders' equity reflects changes in the company's ownership and is not affected by whether the business is involved in merchandising or service activities. Other financial statements, such as the income statement and balance sheet, will be affected by the type of business.

When a Merchandising Business Is Compared to a Service Business