The statement of stockholder's equity differs from the statement of retained earnings in that the statement...

The statement of stockholder's equity differs from the statement of retained earnings in that the statement of stockholders' equity:

a. shows the effect of dividends declared.

b. contains net income.

c. contains the changes in contributed capital.

d. contains a liability section.

Solutions

Expert Solution

The correct answer is Option ‘c’ Stockholders Equity contains the changes in contributed capital section which the Retained earnings does not includes.
Retained earnings statement includes balances of retained earnings and effect of net income and Dividends.
Stockholder’s equity section includes retained earnings balance as well as paid up contributed capital.

ekkarill92 answered 1 year ago

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