Statement of Changes in Equity?

Question 1

What is Statement of changes in equity ( SCE )?

Answer 1

Is the financial statement that presents the movements of the owner’s equity (capital) account during the reporting period. It reflects the ending balance o the owner’s equity.

Question 2

Differentiate SFP and SCE

Answer 2

SFP - is a report on the company’s assets, liabilities, and equity. The equity component of the SFP shows the claim of the owners on the company’s assets.
SCE - is prepared to meet the requirements of the readers to understand the transactions that caused the movements in equity accounts.

Question 3

Forms of Business Organizations

Answer 3

• Sole proprietorship
  -Partnership
  -Corporation
  -Limited liability company
  -Cooperative

Question 4

What is Sole proprietorship?

Answer 4

is the simplest form of a business organization. There is only one
owner referred to as sole proprietor. Oftentimes, the owner is also the manager. The
business has no legal personality separate from its owner. In the eyes of the law, the
business and the owner is one entity.

Question 5

What is partnership?

Answer 5

is a business owned by two or more
owners called partners. They pool their resources together such as money, property, and
industry, to operate a business and divide the profit among themselves.

Question 6

What is Corporation?

Answer 6

is the most complex form of business organization. A corporation is
owned by many owners called stockholders or shareholders. Ownership is divided into
common stocks or shares of stocks. One shareholder can own many stocks. Shareholders
are not normally involved in the day to day operations of the corporation.