A reader of a set of financial statements would expect to be able to find in the statement of changes in shareholders' equity increases
A) in total assets
B) in total liabilities
C) to net income
D) from comprehensive income

Question

Quizplus · Accepted Answer

The statement of changes in shareholders' equity shows the changes in equity during a specified period, including reconciling the beginning and ending balances of shareholders' equity. Increases from comprehensive income, such as gains and losses from foreign currency transactions and changes in the value of available-for-sale securities, are reported in this statement. Increases in total assets, total liabilities, and net income are not typically reported in the statement of changes in shareholders' equity.

A Reader of a Set of Financial Statements Would Expect