What information can be found on a statement of stockholders' equity?
A) A reconciliation of the cash account and the retained earnings account.
B) A reconciliation of the beginning and ending balances of all accounts that appear in the stockholders' equity section of the balance sheet.
C) A reconciliation of the operating, investing and financing activities of a firm.
D) A reconciliation of net profit or loss and the cash account.

Question

Quizplus · Accepted Answer

A statement of stockholders' equity provides a reconciliation of the beginning and ending balances of all accounts that appear in the stockholders' equity section of the balance sheet. It shows the changes that occurred in stockholders' equity during the period, such as the issuances and repurchases of stock, dividend payments, and changes in retained earnings. It does not provide information on the cash account or other accounts not related to stockholders' equity.

What Information Can Be Found on a Statement of Stockholders