The Major Difference in the Statement of Retained Earnings Between

question 54

Multiple Choice

The major difference in the Statement of Retained Earnings between a service business and a merchandising business is:

• A)that the Retained Earnings statement of a service business includes Dividends.
• B)that the Retained Earnings statement of a merchandising business includes Dividends.
• C)that the Retained Earnings statement of a merchandising business shows the Cost of Goods Sold.
• D)nothing. There are no differences between the two.

---

Definitions:

Price Regulation

The imposition of controls by a government on the price(s) that can be charged for goods and services in a market.

Lifesaving Drug

A medication that is essential for survival, often used to treat a life-threatening condition or disease.

Bundle

The practice of selling multiple products or services together as a single combined unit, often at a reduced price compared to purchasing the items separately.

Upstream Price Discrimination

A pricing strategy where a supplier varies prices charged to retailers or manufacturers based on factors like order volume or bargaining power.