Which of the following items affects total shareholders' equity without being reported on the income statement?
A)discontinued operations
B)extraordinary items
C)sale of common stock at a price above par
D)purchase of property,plant and equipment in exchange for a long-term note

Question

Quizplus · Accepted Answer

The sale of common stock above par generates additional paid-in capital, which is a component of total shareholders' equity but is not reported on the income statement. Discontinued operations and extraordinary items are reported on the income statement and affect net income, which in turn affects total shareholders' equity. The purchase of property, plant, and equipment in exchange for a long-term note affects both assets and liabilities, but does not directly affect total shareholders' equity.

Which of the Following Items Affects Total Shareholders' Equity Without