A stockholders' equity statement shows:
A) how net income and dividends affect the retained earnings of a firm.
B) the revenues, expenses, and net income over a firm's accounting period.
C) a firm's sources and uses of cash in a given accounting period.
D) both the operational and financial budgets of a firm.

Question

Quizplus · Accepted Answer

A stockholders' equity statement shows how net income and dividends affect the retained earnings of a firm, which is a crucial aspect of the financial well-being of the company. It is a part of the financial statements that provides information about the equity section of the balance sheet, including the changes in retained earnings due to net income and dividends, stock issuances and repurchases, and other equity transactions. It does not show the revenues, expenses, and net income over a firm's accounting period or the sources and uses of cash. Additionally, it does not include budgets, operational or financial.

A Stockholders' Equity Statement Shows