The Statement of Owner's Equity is the same for a service business as for a merchandise business.

Question

Quizplus · Accepted Answer

Both service and merchandise businesses use the Statement of Owner's Equity to report changes in the owner's capital account over a period, including investments by the owner, withdrawals, and the business's net income or loss. The nature of the business (service vs. merchandise) does not change the fundamental structure of this financial statement.

The Statement of Owner's Equity Is the Same for a Service