The Statement of Changes in Equity Is Required

question 31

Multiple Choice

The statement of changes in equity is required:

• A)because IAS 1 deals with income and does not define profit.
• B)to show profit and loss for the period.
• C)to summarise the large number of transactions that take place on the statement of profit and loss.
• D)to provide a reconciliation of opening and closing equity, and also to provide details of the various equity accounts that are impacted by the period's total comprehensive income.

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Definitions:

Corporate Entities

Organizations established as legal entities that are separate from their owners and officers, with the ability to own property, enter into contracts, and incur liabilities.

National Convention

A large meeting of party delegates in the United States, held every four years to nominate presidential and vice-presidential candidates, adopt a platform, and unify party members.

Party Delegates

Individuals chosen to represent their political party at conventions, often with the responsibility to vote for their party's candidate nominations.

Presidential Candidate

An individual running for election to the presidency, typically representing a political party or an independent platform.