The financial statement that reports the changes in all categories of equity during the period iscalled the:
A) statement of changes in financial position
B) statement of retained earnings
C) statement of changes in shareholders' equity
D) statement of income

Question

Quizplus · Accepted Answer

The statement of changes in shareholders' equity reports the changes in all categories of equity during the period, including changes in share capital, retained earnings, and other comprehensive income. The statement of retained earnings specifically reports only the changes in retained earnings. The statement of income reports revenue, expenses and net income for the period. The statement of changes in financial position (also known as the cash flow statement) reports inflows and outflows of cash during the period.

The Financial Statement That Reports the Changes in All Categories