Cost of the asset$100,000
Life of the asset 5 years
Depreciation rate20%
Capital cost allowance rate 50%
Residual value of the asset nil
Income tax rate 50%
-Which statement contains retained earnings (beginning of year); profit for the year, dividends paid, and retained earnings (end of year)?
A) the statement of cash flows
B) the statement of income
C) the statement of financial position
D) the statement of changes in equity

Question

Cost of the asset$100,000 
Life of the asset 5 years 
Depreciation rate20% 
Capital cost allowance rate 50% 
Residual value of the asset nil 
Income tax rate 50%
-Which statement contains retained earnings (beginning of year); profit for the year, dividends paid, and retained earnings (end of year)?
A) the statement of cash flows
B) the statement of income
C) the statement of financial position
D) the statement of changes in equity

Quizplus · Accepted Answer

The statement of changes in equity contains information about retained earnings at the beginning of the year, profit for the year, dividends paid, and retained earnings at the end of the year. It shows how the equity of the company has changed over the reporting period.

Cost of the Asset$100,000