Question

What is a statement of stockholders’ equity? Select one: a. It is a statement that reconciles only the treasury stock account. b. It is the same as a retained earnings statement. c. It is a statement that summarizes changes in the entire stockholders’ equity section of the balance sheet. d. It is a statement reconciling the difference between stock issued at par value and stock issued at market value.

Answer 1

Answer: Option C

Step-by-step explanation: In simple words, statement of shareholders equity refers to financial statement which depicts the change in the equity of the company from the beginning top the end of a particular accounting year. This statement is issues as the part of the balance sheet of that year.

This statement is used by stakeholders to evaluate the management decisions regarding the sources from which capital is collected and the projects for which it is used.