The preparation of a statement of stockholders' equity makes which other financial statement unnecessary?
A)Income statement
B)Statement of cash flows
C)Statement of retained earnings
D)Balance sheet

Question

Quizplus · Accepted Answer

The statement of retained earnings is incorporated into the statement of stockholders’ equity, making it unnecessary to have a separate statement of retained earnings. The income statement, statement of cash flows, and balance sheet are all separate financial statements that provide important information on a company’s financial performance and position.

The Preparation of a Statement of Stockholders' Equity Makes Which