Asked by ethan battista on Jul 03, 2024
Verified
Where would changes in stockholders' equity resulting from financing provided by operations be reported?
A) Within a long-term asset account.
B) Within the additional paid-in capital account.
C) Within a liability account.
D) Within the retained earnings account.
Financing Provided
Funds supplied to businesses or individuals for the purpose of investing, expansion, or operating expenses that are expected to be repaid in the future.
Retained Earnings
The segment of net profits that are not distributed as dividends, instead kept within the company for reinvestment in its main operations or for debt repayment.
- Identify and segregate the major types of financial documents.
Verified Answer
LJ
Lauryn JohnsonJul 09, 2024
Final Answer :
D
Explanation :
Changes in stockholders' equity resulting from financing provided by operations would be reported within the retained earnings account, which is a component of stockholders' equity.
Learning Objectives
- Identify and segregate the major types of financial documents.