Asked by Laney Reynolds on Apr 24, 2024
The statement of stockholders' equity shows
A) only beginning and ending common stock and beginning and ending balance of retained earnings
B) only changes to common stock and ending retained earnings
C) only beginning balances of common stock and retained earnings, and the effects of net income (loss) on retained earnings
D) beginning and ending balance of common stock, retained earnings and all the changes that result from issuing stock, net income (loss) , dividends
Statement of Stockholders' Equity
A financial document that shows changes in the value of a company's equity over a period through contributions by and distributions to shareholders and earnings.
Common Stock
An equity ownership interest in a corporation, typically giving holders voting rights and a share in the company's profits via dividends.
Retained Earnings
Retained earnings refer to the portion of net income that is kept by a company to reinvest in its business or pay down debt, instead of being distributed to shareholders as dividends.
- Describe the components and purpose of the statement of stockholders' equity.
Learning Objectives
- Describe the components and purpose of the statement of stockholders' equity.
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