Question

Which of the following is not a difference between a retail business and a service business?

a. inventory included on the balance sheet
b. in what is sold
c. accounting equation
d. the inclusion of gross profit on the income statement

Answer 1

The correct answer is c. accounting equation.

Step-by-step explanation:

The accounting equation is an equality that must be fulfilled in any type of organization, regardless of its nature, since it is made up of the main items that are affected in accounting such as: Assets, Liabilities, Equity. These accounts make up the entity's balance sheet, which summarizes the financial situation in which it is in a given period.