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.