A statement of retained earnings is not as informative as a statement of stockholders' equity.

Question

Quizplus · Accepted Answer

A statement of retained earnings only shows the changes in retained earnings, whereas a statement of stockholders' equity shows all the changes in equity, including retained earnings, additional paid-in capital, and other comprehensive income. Therefore, a statement of stockholders' equity provides a more detailed breakdown of the changes in equity and is more informative.

A Statement of Retained Earnings Is Not as Informative as a Statement