The Statement of Stockholders' Equity

question 105

Multiple Choice

The statement of stockholders' equity:

• A)Is a required financial statement.
• B)May be issued as a substitute for the statement of retained earnings.
• C)Shows the changes during the year in all stockholders' equity accounts except retained earnings.
• D)Is a statement sent to each stockholder showing that person's return on equity.

---

Definitions:

Planning Horizon

The time period over which an individual, organization, or government plans for and anticipates future events and activities.

Elasticity

Percentage change in one variable resulting from a 1-percent increase in another.

Federal Government

The national government of a federation, which typically has distinct powers delegated to it by the constitution, separate from those of member states or provinces.

Legislative Branch

The branch of government responsible for creating and passing laws, in the United States, it is composed of the House of Representatives and the Senate.