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Brady Carter
on Nov 15, 2024

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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) statement of income.
C) statement of cash flows.
D) statement of changes in equity.

Statement Of Changes In Equity

A financial statement that shows how the equity of a company has changed over a period due to various factors like profits, losses, and distributions to shareholders.

Retained Earnings

The portion of a company's profits that is held or retained and not distributed as dividends to shareholders, often reinvested in the business or used to pay off debt.

  • Recognize the importance and components of the statement of changes in equity.
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GJ
Gokanile JacobsNov 16, 2024
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