If There Are No Changes in a Company's Capital Stock

question 42

Multiple Choice

If there are no changes in a company's capital stock during a period,the company may choose to prepare

• A)an income statement instead of a statement of stockholders' equity.
• B)an income statement instead of a statement of retained earnings.
• C)a statement of stockholders' equity instead of a statement of retained earnings.
• D)a statement of cash flows instead of a statement of retained earnings.

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Definitions:

Legal Fight

A dispute handled and resolved within a judicial or legal system.

Whistle-blowing

The act of exposing misconduct, unethical practices, or violations of laws within an organization by an insider.

Expense Reports

Documentation and statements that detail spending during a specific period, usually for the purpose of accounting and reimbursement.

State Regulatory Board

A government agency at the state level responsible for overseeing the adherence to laws and regulations within a specific sector.