The Statement of Changes in Net Worth Is Presented in Terms

question 2

True/False

The statement of changes in net worth is presented in terms of realized increases (decreases)and unrealized increases (decreases).

---

Definitions:

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Net Income

The remaining profit of a company after all necessary subtractions, such as taxes and expenses, from its revenue.

Net Income

A company's remaining earnings after deducting all taxes and costs from the complete revenue.

Income Splitting

A tax strategy used to transfer income from a higher-tax-rate taxpayer to a lower-tax-rate taxpayer to reduce the total tax paid.