When comparing a retail business to a service business, the financial statement that changes the most is the

Question

Quizplus · Accepted Answer

The income statement is likely to change the most when comparing a retail business to a service business because the revenue structures for each business model can be very different. Retail businesses generate most of their revenue from sales of tangible goods, while service businesses generate revenue from providing intangible services. This can result in different cost structures and profit margins, which will be reflected in the income statement. The balance sheet, statement of stockholders' equity, and statement of cash flows may all be affected by these differences to some extent, but the income statement will see the most significant changes.

When Comparing a Retail Business to a Service Business, the Financial