The Statement of Changes in Equity Is Required

question 36

Multiple Choice

The statement of changes in equity is required.

• A) Because AASB 101 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 income statement.
• D) To show each item of income and expense for the period that is recognised directly in equity as required by other AASB standards.
• E) 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:

Lacrimal Fluid

The clear, watery fluid produced by the lacrimal glands in the eyes; it's commonly known as tears, serving to lubricate and protect the eye.

Lower Palpebrae

The lower eyelid, playing an essential role in protecting the eye from debris and aiding in tear distribution.

Cranial Nerve IX

Also known as the Glossopharyngeal nerve, it is responsible for taste sensations in the posterior one-third of the tongue and contributes to swallowing.

Lesion

Any abnormal structural change in body tissue, often referring to damage caused by disease or trauma.