BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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statement of financial position
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statement of comprehensive income
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statement of changes in equity
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statement of cash flows
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Detailed explanation-1: -Statement of Changes in Equity refers to the reconciliation of the opening and closing balances of equity in a company during a particular reporting period. It explains the connection between a company’s income statement and balance sheet.
Detailed explanation-2: -Total equity reconciliation aims to account for the different allocations of profit between realised and unrealised which are caused when two systems process the same FIFO trades but in different orders, an inevitable consequence of processing data in disparate systems.
Detailed explanation-3: -A statement of change in equity (also referred to as statement of retained earnings) is a business’ financial statement that measures the changes in owners’ equity throughout a specific accounting period. It covers the following elements: Net profit or loss. Dividend payments.
Detailed explanation-4: -Net profit or loss. Dividend payments. Proceeds from the sale of stock. Treasury stock purchases.
Detailed explanation-5: -Changes in the equity share capital and other equity during the accounting period of: Changes in accounting policy. Prior period errors. Total comprehensive income.