Where would we report changes in shareholders' equity caused by operating activities?

Question

Quizplus · Accepted Answer

Changes in shareholders' equity caused by operating activities are typically recorded in the retained earnings account. This account represents the cumulative earnings of the company that have not been paid out as dividends. As such, any increases or decreases in earnings generated through operating activities will ultimately impact the retained earnings balance. Share capital accounts, liability accounts, and asset accounts may be impacted by other types of transactions or events.

Where Would We Report Changes in Shareholders' Equity Caused by Operating