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:

Commission

A fee or percentage allowed to agents or salespeople for their services.

Salesperson

An individual who sells goods and services to others, aiming to meet customers' needs and ensure satisfaction.

Nurse

A healthcare professional who is skilled in promoting and maintaining health.

Fair Labor Standards Act

Legislation in the United States that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.