The Financial Statement That Shows the Changes to a Corporation's

question 61

Multiple Choice

The financial statement that shows the changes to a corporation's contributed capital is called:

• A) Balance Sheet.
• B) Statement of Changes in Equity.
• C) Income Statement.
• D) Statement of Contributed Capital.
• E) None of these answers is correct.

---

Definitions:

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, critical for daily operations, taxes, purchasing inventory, and paying employees.

Probability

A measure of the likelihood that a specific event will occur.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Cost of Capital

The rate of return that a business must earn on its investment projects to increase or maintain its value, encompassing the cost of debt and equity.