Question 3 (8 marks)

This question is related to the financial statements including (1) income statement, (2) statement of changes in stockholders equity and (3) statement of financial position.

1. What does income statement measure?

2. What does statement of changes in stockholders equity measure?

3. What does statement of financial position measure?

(2 marks) (2 marks) (2 marks)

d. Discuss the interrelationship among income statement, statement of changes in stockholders

equity and statement of financial position.