The financial statement that reports the changes in all categories of equity during the period is called the:
A) statement of changes in financial position.
B) statement of stockholders' equity.
C) net income statement.
D) statement of change in total equity.

Question

Quizplus · Accepted Answer

The statement of stockholders' equity reports the changes in all categories of equity such as common stock, retained earnings, and any other comprehensive income during the period. The statement shows the beginning balance, any changes during the period (such as net income, dividends, or stock issuances), and the ending balance of each category of equity. Option A refers to the statement of changes in financial position, which reports changes in cash and cash equivalents, accounts receivable, inventory, accounts payable, and other current assets and liabilities. Option C refers to the net income statement, which reports the revenue, expenses, gains, and losses during the period to calculate the net income or loss. Option D is not a commonly used financial statement.

The Financial Statement That Reports the Changes in All Categories