The statement of financial position and statement of changes in equity are related because
A)the total assets on the statement of financial position is reported on the statement of changes in equity.
B)the ending amount on the statement of changes in equity is reported on the statement of financial position.
C)the ending amount on each statement is transferred to the statement of cash flows.
D)both contain information for the corporation.

Question

Quizplus · Accepted Answer

The ending amount on the statement of changes in equity, which reflects the total equity at the end of the period, is reported on the statement of financial position under shareholders' equity. This shows the relationship between the two statements, as changes in equity impact the equity section of the statement of financial position.

The Statement of Financial Position and Statement of Changes in Equity