Asked by Kaleb Hulsey on May 11, 2024
Verified
Generally accepted accounting principles require a company to show two years of data on its statement of stockholders' equity.
Generally Accepted Accounting Principles
A framework of accounting standards, principles, and procedures that companies must follow when compiling their financial statements in the U.S.
Statement of Stockholders' Equity
A financial statement showing the changes in the value of a company's equity over a specific period, due to earnings, losses, and dividends.
- Identify the components and structure of stockholders' equity.
Verified Answer
MH
Muhammad HizalMay 12, 2024
Final Answer :
False
Explanation :
Generally accepted accounting principles do not require a company to specifically show two years of data on its statement of stockholders' equity. However, the company may choose to include multiple years of data for comparative purposes.
Learning Objectives
- Identify the components and structure of stockholders' equity.