The financial statement that summarizes the changes in common shares and retained earnings for a specific period of time is the
A)statement of financial position.
B)income statement.
C)statement of cash flows.
D)statement of changes in equity.

Question

Quizplus · Accepted Answer

The only financial statement that summarizes changes in common shares and retained earnings is the statement of changes in equity. The statement of financial position (A) summarizes a company's assets, liabilities and equity at a specific point in time, while the income statement (B) summarizes a company's revenues and expenses for a specific period of time. The statement of cash flows (C) summarizes a company's cash inflows and outflows for a specific period of time.

The Financial Statement That Summarizes the Changes in Common Shares