Which of the following statements best describes the Statement of Changes in Equity?
A)It provides information about the financial position of an entity at a specific point in time.
B)It measures the economic performance of the entity over a period of time.
C)It summarizes the changes to shareholders' equity during a period.
D)It shows how an entity managed its cash during the reporting period.

Question

Quizplus · Accepted Answer

The Statement of Changes in Equity summarizes the changes to shareholders' equity during a period. It shows how the entity's equity has changed from the beginning of the period to the end of the period, including factors such as profits, losses, share issuances, and dividend payments. It does not provide information about the financial position at a specific point in time or measure economic performance over a period of time, and it does not show how the entity managed its cash during the reporting period.

Which of the Following Statements Best Describes the Statement of Changes