The statement of changes in stockholders' equity:
A)Is part of the statement of retained earnings.
B)Shows only the ending balances in stockholders' equity.
C)Describes changes in contributed capital and retained earnings subcategories
D)Does not include changes in treasury stock.
E)Is reported by very few companies.

Question

Quizplus · Accepted Answer

The statement of changes in stockholders' equity describes changes in contributed capital and retained earnings subcategories. It does not show only the ending balances in stockholders' equity and it includes changes in treasury stock. It is a required financial statement for all public companies and is also commonly used by private companies. It is separate from the statement of retained earnings, although the two statements may have overlapping information.

The Statement of Changes in Stockholders' Equity