The Financial Statement That Shows the Beginning Balance of Equity

question 74

Multiple Choice

The financial statement that shows the beginning balance of equity, the changes in equity that resulted from new investments by the owner, net income (or net loss) , withdrawals, and the ending balance of equity is the:

• A)Statement of changes in equity.
• B)Statement of financial position.
• C)Statement of cash flows.
• D)Income statement.
• E)Balance sheet.

---

Definitions:

Stock Portfolio

A collection of stocks that an individual or institution holds, representing investments across one or more types of stock, sectors, or industries.

Positive Utility

The benefit or satisfaction gained from the consumption of goods or services that contribute to an individual's well-being and happiness.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision, which can lead to biases.

Framing Effect

The cognitive bias where people react differently to a particular choice depending on how it is presented, such as a loss or gain.