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soldier1979 [14.2K]
3 years ago
10

A _______ account represents the basic financial position elements of the accounting equation and a _______ account keeps track

of the changes in the retained earnings component of shareholders' equity.
Business
1 answer:
bezimeni [28]3 years ago
7 0

Answer:

Balance Sheet

Statement of Changes in Shareholders equity

Explanation:

A Balance Sheet account represents the basic financial position elements of the accounting equation and a Statement of Changes in Shareholders Equity account keeps track of the changes in the retained earnings component of shareholders' equity.

A balance sheet in financial accounting, is a statement of financial position or statement of financial condition which shows all the assets, liabilities, and capital of a profit or not-for-profit organization at a given date.

A statement of changes in shareholders equity is a financial statement that shows a summary of all movements that took place in shareholders' equity accounts within a reporting period. It is in a nut-shell a reconciliation of the opening balances of equity accounts with their closing balances.

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