Regarding the Statement of Stockholders' Equity,which of the Following Statements

question 124

Multiple Choice

Regarding the statement of stockholders' equity,which of the following statements is incorrect?

• A) The statement of stockholders' equity has more information than the statement of retained earnings because it reports the changes in all stockholders' equity accounts.
• B) The statement of stockholders' equity does not show the changes to the Retained Earnings account because that information is provided in the statement of retained earnings.
• C) The statement of stockholders' equity is an option for reporting the changes in stockholders' equity of a corporation.
• D) The statement of stockholders' equity reports the number of shares and any changes during the year in preferred, common, and treasury stock.

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Definitions:

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.

Cost of Goods Sold

The expenditure directly associated with producing a company's sold goods, covering materials and labor involved.