Question

A potential investor in Cristian's company wants to know how much money was paid in dividends in the last reporting period. What type of financial statement should he look at?

A. Statement of changes in equity
B. Balance sheet
C. Cash flow statement
D. Income statement

Answer 1

A. Statement of changes in equity

Step-by-step explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

Basically, the type of financial statement a potential investor should look at is the statement of changes in equity.

The statement of changes in equity provides an information about the reconciliation of the opening and closing balances of equity with respect to a company at a specific period of time.