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

2 Answers

• Income Statement.

  A retail business would have an entire section for cost of goods sold. A service business would not.

  Hope that helps. :0)

  Source(s): Accountant.

• I would say it would be the Balance Sheet since I am assuming the retail business carries inventory whereas a service business may not. Inventory is a big item in your financial statements, several key ratios are based on the amount of inventory you have.