On a statement of changes in equity, ______.
A) net income is subtracted and cash dividends are added
B) net income is added and cash dividends paid are subtracted
C) net income is subtracted and cash dividends are subtracted
D) net income is added and cash dividends are added

Question

Quizplus · Accepted Answer

The statement of changes in equity shows the changes in the company's equity during a specific period. Net income is added because it increases the company's equity, while cash dividends paid are subtracted because they decrease the company's equity. Therefore, the correct answer is B, net income is added and cash dividends paid are subtracted.

On a Statement of Changes in Equity, ______