The statement that reconciles the opening and closing balances of shareholders' equity is referred to as a:
A)statement of changes in equity
B)statement of financial position
C)statement of comprehensive income
D)none of the above

Question

Quizplus · Accepted Answer

The statement that reconciles the opening and closing balances of shareholders' equity is referred to as the statement of changes in equity. This statement shows the changes in a company's equity over a specific period, including net income, dividends, and any other adjustments. It is used to reconcile the beginning and ending balances of shareholders' equity and is an essential component of a company's financial statements. The statement of financial position (also known as the balance sheet) shows the financial position of a company at a specific point in time, while the statement of comprehensive income shows a company's financial performance over a specific period, including all gains and losses.

The Statement That Reconciles the Opening and Closing Balances of Shareholders