The major difference in the Statement of Retained Earnings between a service business and a merchandising business is:
◦ that the Retained Earnings statement of a merchandising business shows the Cost of Goods Sold.
◦ that the Retained Earnings statement of a service business includes Dividends.
◦ that the Retained Earnings statement of a merchandising business includes Dividends.
◦ nothing. There are no differences between the two.