The statement of stockholders' equity has less information than the statement of retained earnings.

Question

Quizplus · Accepted Answer

The statement of retained earnings only shows changes in retained earnings for a period, while the statement of stockholders' equity shows all changes in equity including changes in stock options, treasury stock, and other equity accounts. Therefore, the statement of stockholders' equity provides more detailed information than the statement of retained earnings.

The Statement of Stockholders' Equity Has Less Information Than the Statement