Where would we report changes in shareholders' equity caused by operating activities?
A) In the retained earnings account.
B) In a contributed capital account.
C) In a liability account.
D) In an asset account.

Question

Quizplus · Accepted Answer

Changes in shareholders' equity caused by operating activities, such as net income or loss, are reported in the retained earnings account. This account reflects the accumulation of profits and losses over the life of the company after dividends are paid out.

Where Would We Report Changes in Shareholders' Equity Caused by Operating