Statement of Shareholders Equity | CFA Level 1 Exam Prep

Understanding the Statement of Shareholders Equity

Prev Question Next Question

Question

Which of the following best describes a statement of shareholders equity?

Answers

A. A statement of shareholders equity measures a company's financial performance over a specified period of time.

B. A statement of shareholders equity details the cash inflows and outflows that are related to a company's operating, investing, and financing activities over a period of time.

C. None of these answers.

D. A statement of shareholders equity reports changes over a period of time in component accounts that comprise the ownership of a firm.

E. A statement of shareholders equity summarizes the financial position of a company at a given point in time.

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

The statement of shareholders equity reports changes in component accounts that comprising equity of a firm. This statement is useful in identifying reasons for changes in shareholders' claims on the assets of a company.

Prev Question Next Question