Where would changes in stockholders' equity resulting from operations be reported?
A)Within a long-term asset account.
B)Within the contributed capital account.
C)Within a liability account.
D)Within the retained earnings account.

Question

Quizplus · Accepted Answer

Stockholders' equity has two parts; financing from contributed capital and business operations. Retained earnings are the result of business operations, and therefore changes in stockholders' equity from operations are reported in retained earnings.

Where Would Changes in Stockholders' Equity Resulting from Operations Be