The financial statement which shows all the changes in the owners' interest in the net assets of the business is:
A)statement of changes in owners' equity.
B)statement of cash flows.
C)statement of comprehensive income.
D)none of the above.

Question

Quizplus · Accepted Answer

The statement of changes in owners' equity shows all the changes in the owners' interest in the net assets of the business, including contributions, distributions, and net income or loss. The statement of cash flows shows the inflow and outflow of cash and cash equivalents, while the statement of comprehensive income shows the changes in equity resulting from transactions and other events outside of the owners' contributions and distributions. Therefore, option A is the correct answer.

The Financial Statement Which Shows All the Changes in the Owners