The statement of stockholders' equity
A)is one of the required financial statements for the annual report,when changes have occurred in the stockholders' equity accounts.
B)shows only the changes in retained earnings for the period,which includes the increase or decrease as a result of net income or loss for the period,and dividends for the period.
C)includes accounts,such as the Retained Earnings and Common Stock accounts,but not changes to the Retained Earnings account,since those items are reported on the statement of retained earnings.
D)is used only if a corporation frequently issues common stock.

Question

Quizplus · Accepted Answer

The statement of stockholders' equity is one of the required financial statements for the annual report, when changes have occurred in the stockholders' equity accounts. It shows the changes in each account within stockholders' equity, such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Treasury Stock, during the given period. It also shows the beginning balance, any changes due to stock issuances or repurchases, net income or loss for the period, dividends paid, and ending balance for each account within stockholders' equity.

The Statement of Stockholders' Equity