Only 1 easy multiple choice question. 4) The statement of stockholders equity: a

Question

Only 1 easy multiple choice question.

4) The statement of stockholders equity:

a. Is a required financial statement.

b. May be issued as a substitute for the statement of retained earnings.

c. Shows the changes during the year in all stockholders' equity accounts except retained earnings.

d. Is a statement sent to each stockholder showing that person's return on equity.

This is my 3rd time asking this question and I have received 3 different answers, c, b and d. I need to know which answer is the right one and why. Please don't say A, haha.

Explanation / Answer

The correct answer is

b. May be issued as a substitute for the statement of retained earnings

The Statement of Stockholders Equity is the statement that explains the changes of the company`s equity throughout the reporting Period. Therefore, it can be issued as a substitute of the statement of the retained earnings.

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