A statement of stockholders' equity can take the place of a statement of retained earnings.

Name: A statement of stockholders' equity can take the place of a statement of retained earnings.
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A statement of stockholders' equity covers all changes to equity, including retained earnings, as well as other components such as common stock and additional paid-in capital. Therefore, it can replace a statement of retained earnings in certain situations.

A Statement of Stockholders' Equity Can Take the Place of a Statement