115 CFA
File: Financial Analysis - Reading 22 - 4. Equity

4. Equity

f. describe the components of shareholders' equity;

What are the five components that comprise the owner's equity section on the balance sheet?
1. Contributed capital
2. Minority interest
3. Retained earnings
4. Treasury stock
5. Accumulated comprehensive income

What is the Statement of Changes in Shareholders Equity?
It reflects information about increases or decreases to a company's net assets or wealth.

What is the purpose of the shareholders equity section of the balance sheet?
It lists the items in contributed capital and retained earnings on the balance sheet date.

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