Which statement is true of the statement of stockholders' equity?
A) It reports a company's assets, liabilities, and equities.
B) It reports a company's revenue and expenses for a period.
C) It is prepared using the unadjusted trial balance in order to facilitate the closing process.
D) It shows a company's stock issuances and dividends paid to shareholders.

Question

Quizplus · Accepted Answer

The balance sheet is described in "A," the income statement in "B," and "C" applies primarily to the income statement. Answer "D" is the best choice as it shows changes in all equity accounts.

Which Statement Is True of the Statement of Stockholders' Equity