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4 — Statement of Changes in Owner's Equity Determine key elements of a statement of changes...

4 — Statement of Changes in Owner's Equity Determine key elements of a statement of changes in owner's equity.

Which of the following characteristics describes a statement of changes in owner's equity?

a.) Shows the variation in retained earnings from last year

b.) Displays how much revenue the firm earned in the last year

c.) Calculated by subtracting expenses from revenue

d.) Is of interest to potential investors SUBMIT MY ANSWER

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Answer #1

The key elements of a statement of changes in owner's equity is as follows

A) Opening balance of shareholder's equity reserves ie share capital and retained earnings

B) Changes in accounting policy

C) Correction of prior period error

D) Changes in equity for the year which includes Issue of share capital, Income/loss for the year , Changes in revaluation reserve , dividends, other gains and losses

The characteristic which describes a statement of changes in owner's equity is that it shows variation in retained earnings from last year i.e Option A

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