Changes in an entity's equity between the beginning and the end of the reporting period reflect the increase or decrease in its:
A) liabilities during the period.
B) net profit for the period.
C) assets during the period.
D) net assets during the period.

Question

Quizplus · Accepted Answer

Changes in an entity's equity between the beginning and the end of the reporting period reflect the increase or decrease in its net assets during the period. This includes any changes in equity from net profits or losses, as well as changes in equity from investments, dividends, and other transactions. Liabilities and assets may also impact equity, but they do not directly reflect changes in equity.

Changes in an Entity's Equity Between the Beginning and the End