Q4-37. An entity’s equity may decrease during a financial period because:

a. Other comprehensive income was lower than net profit.

b. There was a new share issuance.

c. Total comprehensive income was higher than net profit.

d. Prior-period errors resulted from overstatement of the previous year’s profits.

Q4-38. The notes to the accounts can be used for the following, except for:

a. Explaining why a certain accounting standard was not followed.

b. Providing disclosures of items not shown on the face of financial statements.

c. Providing additional breakdown of line items on the face of financial statements.

d. Explaining the accounting policies used.