Which statement is true of the statement of stockholders' equity?
A) It reports a company's assets, liabilities, and equities.
B) It reports a company's revenue and expenses for a period.
C) It reports a company's cash flows from operating activities, investing activities, and financing activities.
D) It shows a company's stock issuances and dividends paid to shareholders.

Question

Quizplus · Accepted Answer

The statement of stockholders' equity shows changes in the equity section of a company's balance sheet, including stock issuances and dividends paid to shareholders. It does not report on assets, liabilities (A), revenue and expenses (B), or cash flows (C), which are covered in the balance sheet, income statement, and cash flow statement, respectively.

Which Statement Is True of the Statement of Stockholders' Equity