Asked by Emily Feasel on May 18, 2024
Verified
The first item appearing on the statement of stockholders' equity is
A) net income
B) the ending balance of retained earnings
C) dividends
D) the beginning balance of retained earnings
Statement of Stockholders' Equity
A financial statement that shows changes in the ownership interest of a company's shareholders, including contributions, distributions, and earnings.
Retained Earnings
The segment of net earnings that is not paid out as dividends but instead kept by the corporation for reinvestment in its primary operations or for debt repayment.
- Recognize the order of presentation for components within the statement of stockholders' equity.
Verified Answer
BA
Brian ArellanoMay 22, 2024
Final Answer :
D
Explanation :
The first item appearing on the statement of stockholders' equity is typically the beginning balance of retained earnings, as it sets the stage for adjustments made during the period covered by the statement.
Learning Objectives
- Recognize the order of presentation for components within the statement of stockholders' equity.
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