The Statement of Owner's Equity Shows the Changes in Owner's

question 77

Multiple Choice

The statement of owner's equity shows the changes in Owner's capital.Which one of these statements is TRUE?

• A) Decreases in Owner's equity result from owner investments.
• B) Decreases in Owner's equity result from net losses.
• C) Decreases in Owner's equity result from net income.
• D) Decreases in Owner's equity result from revenues earned.

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Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if the group were a single economic entity.

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often leading to the need for elimination adjustments in consolidated financial statements.

Pre-acquisition Entries

Journal entries made to adjust the values of the acquiring company's assets and liabilities upon acquisition.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.