The Financial Statement That Summarizes the Changes in Contributed Capital

question 33

Multiple Choice

The financial statement that summarizes the changes in contributed capital and retained earnings for a specific period of time is the

• A) statement of financial position.
• B) statement of earnings.
• C) statement of cash flows.
• D) statement of changes in equity.

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Definitions:

Accrued Interest Revenue

Income earned from investments that have not yet been received in cash, typically from bonds or loans, and recognized in accounting periods in which they are earned.

Depreciation Expense

The allocation of the cost of an asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.