A Statement of Changes in Net Assets in the Financial

question 43

Multiple Choice

A statement of changes in net assets in the financial statements of a not-for-profit organization corresponds most closely to which of the following in the financial statements of a profit-oriented business which reports under IFRS?

• A) The statement of financial position.
• B) The statement of cash flows.
• C) The income statement.
• D) The statement of changes in shareholders' equity.

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Definitions:

Real Rate of Return

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.

Dividends

Profits disbursed by a business to its equity shareholders, usually generated from the company's financial gains.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Standard Deviation

A statistical measure that indicates the variability or volatility of a set of data points.