The Statement of Financial Position and Statement of Changes in Equity

question 83

Multiple Choice

The statement of financial position and statement of changes in equity are related because

• A)the total assets on the statement of financial position is reported on the statement of changes in equity.
• B)the ending amount on the statement of changes in equity is reported on the statement of financial position.
• C)the ending amount on each statement is transferred to the statement of cash flows.
• D)both contain information for the corporation.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Wage Rate

The amount of compensation workers receive in exchange for their labor, typically expressed per hour, day, or piece rate.

Economic Rent

The excess payment made to a factor of production over and above what is needed to bring that factor into productive use.

Electricians

Skilled tradespeople who specialize in the installation, maintenance, and repair of electrical systems and equipment.