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:

Pretend Play

A form of play among children where they use their imagination to create scenarios, roles, and activities, often involving make-believe propositions.

Mental Acts

Activities of the mind, such as thinking, reasoning, remembering, and imagining.

Mutual Exclusivity Assumption

The cognitive bias in children to assume that any given object will only have one name.

Visual Acuity

Keenness or sharpness of vision.