Which Is the Best Description of the Relationship Between the Statement

question 31

Multiple Choice

Which is the best description of the relationship between the statement of financial performance and the statement of financial position?

• A)There is no direct relationship between the statement of comprehensive income and the statement of financial position.
• B)The opening statement of financial position plus the profit equals the closing statement of financial position.
• C)The statement of financial position is the link between two statement of comprehensive incomes.
• D)The statement of financial performance explains the change in equity that arises from operating activities.

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Definitions:

Transactions Costs

The expenses beyond the price of the product that buyers and sellers incur when making a transaction, such as fees, taxes, or other expenses.

Interest Rate

The cost of borrowing money or the compensation for lending money, usually expressed as a percentage of the principal amount per period.

Rational Investor

A person who utilizes logical analysis for making investment choices, with the goal of maximizing gains and reducing risks.

Interest Rate

The cost of borrowing money or the rate paid on deposits, serving as the price of credit or savings in the financial market.