When comparing a retail business to a service company the fi

When comparing a retail business to a service company, the financial statements changes the most is: O State of affairs C Statement of revenue and expenditure State equity owner Statement of cash flows C The main difference between a periodic inventory system is perpetual and one a.. Periodic determines the inventory available only at the end of the accounting period Periodic keeps a record showing the available inventory at all times Periodic provides an easy means to determine inventory shrinkage. Periodic records the cost of selling on the date of sale.

Solution

The correct choice is : - The statement of revenue and expenditure

Explanation : - The revenue activities of a retail business consists of buying and selling merchandise. When the merchandise is sold, the revenue is reported as sales. In contrast, the revenue activities of a service business involves providing service to customers . These revenues are reported on the financial statement as fees earned.

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The correct choice is : - Periodic determines the inventory available only at the end of the accounting period

Explanation : - The main difference between a perpetual and periodic inventory system is that periodic system only updates the inventory and cost of goods sold account at the end of the accounting period. In contrast, a perpetual inventory system updates the inventory and cost of goods sold accounts continually as good are purchased or sold.