The Statement of Changes in Equity

question 39

Multiple Choice

The statement of changes in equity

• A)Indicates the ability of the entity to generate cash flow
• B)Shows the selling price of the entity's assets
• C)Shows how profit was determined
• D)Serves as a connecting link between the income statement and the balance sheet.

---

Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow, which presents a hierarchy of human needs in the form of a pyramid, starting from basic physiological needs to the need for self-actualization.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into existence, relatedness, and growth needs.

Frustration-Regression Principle

A concept suggesting that when faced with frustration, individuals may regress to a previous level of maturity, affecting their problem-solving and coping strategies.

Social Needs

Basic human requirements comprising of love, belonging, and interpersonal relationships.