Final answer:
Service and merchandising businesses differ in terms of preparing a statement of comprehensive income primarily because of the nature of services provided.
Step-by-step explanation:
Service and merchandising businesses differ in terms of preparing a statement of comprehensive income primarily because of the nature of services provided. Service businesses mainly offer intangible services such as consulting, healthcare, or education, which cannot be stored or inventoried. On the other hand, merchandising businesses deal with tangible goods that can be purchased and resold. Therefore, the revenue and expenses for service businesses are reported differently compared to merchandising businesses.