The statement of shareholders' equity reports the transactions that cause changes in its shareholders' equity account balances. It shows the beginning and ending balances in primary shareholders' equity accounts and any changes that occur during the years reported. Typical reasons for changes include each of the following except:
A) the sale of additional shares of stock.
B) the issuance of bonds.
C) net income.
D) declaration of dividends.

Question

Quizplus · Accepted Answer

The issuance of bonds affects liabilities, not shareholders' equity. The other options (A, C, D) are all typical reasons for changes in shareholders' equity.

The Statement of Shareholders' Equity Reports the Transactions That Cause