Which one of the following financial statements shows how and why each equity account in the company's balance sheet changed from one year to the next?

Question

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The statement of stockholders' equity shows the changes in the equity accounts from one year to the next, including information on net income, dividends, and any other changes in equity. The balance sheet shows the current financial position of the company, the income statement shows the company's revenues and expenses, and the statement of retained earnings shows the changes in the company's retained earnings account.

Which One of the Following Financial Statements Shows How and Why