Question

Which of the following would not be an entry in the statement of changes in equity?

• A. Revaluation gain
• B. Dividends paid
• C. Taxation
• D. Profit for the year

Answer 1

Answer: (C)

Taxation

There are four main types of financial statements, which are as follows:

Income statement is report that reveals the financial performance of an organisation for the entire reporting period.

Balance sheet is report that shows the financial position of a business as of the report date (so it covers a specific point in time).The information is aggregated into the general classifications of assets, liabilities, and equity.

Statement of cash flows is report that reveals the cash inflows and outflows experienced by an organisation during the reporting period.

Statement of changes in equity is the report of documents, all changes in equity during the reporting period. These changes include the issuance or purchase of shares, dividends issued, and profits or losses.