BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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List all assets, liabilities, and equity as they stand at the end of a given accounting period
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Report all changes to owner’s equity over a given accounting period
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List all revenues and expenses over a given accounting period
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Add any new investments by owners or stockholders
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Detailed explanation-1: -A statement of owner’s equity is a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner’s equity. Tracked over a specific timeframe or accounting period, the snapshot shows the movement of cashflow through a business.
Detailed explanation-2: -The statement of owner’s equity reports the changes in company equity, from an opening balance to and end of period balance. The changes include the earned profits, dividends, inflow of equity, withdrawal of equity, net loss, and so on.
Detailed explanation-3: -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-4: -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.
Detailed explanation-5: -The statement of owner’s equity-also called the statement of retained earnings-shows the change in retained earnings between the beginning and end of a period (e.g., a month or a year). The balance sheet reflects a company’s solvency and financial position.