The Statement of Stockholders' Equity

question 41

Multiple Choice

The statement of stockholders' equity

• A) is one of the required financial statements for the annual report, when changes have occurred in the stockholders' equity accounts.
• B) shows the changes in retained earnings for the period, which includes the increase or decrease as a result of net income or loss for the period, and dividends for the period.
• C) includes accounts, such as the retained earnings and common stock accounts, but not changes to the retained earnings account, since those items are reported on the statement of retained earnings.
• D) is used only if a corporation frequently issues common stock.

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Definitions:

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, and praise.

Reward

An outcome or event that strengthens the likelihood of a behavior by providing a positive consequence or satisfaction to the subject.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

Extrinsic Motivation

The drive to perform actions or engage in activities due to external rewards or pressures rather than for intrinsic satisfaction.