Asked by Li-Yun Chang on Jul 18, 2024
Verified
What financial statement would you look at to determine the dividends declared by a business?
A) Income statement.
B) Statement of stockholders' equity.
C) Statement of cash flows.
D) Balance sheet.
Statement of Stockholders' Equity
A financial statement showing the changes in the equity section of the balance sheet during a certain period, including shares issued, dividends paid, and earnings.
Income Statement
A financial document detailing a company's revenues, expenses, and net income over a specific period, illustrating its profitability.
- Comprehend the dynamics and variations in shareholders' equity.
Verified Answer
LE
Latoya EvansJul 25, 2024
Final Answer :
B
Explanation :
The statement of stockholders' equity shows changes in the components of stockholders' equity, including dividends declared, over a given period of time. This statement is important in understanding the movement of funds between the company and its owners. The income statement shows revenue and expenses, the statement of cash flows shows cash inflows and outflows, and the balance sheet shows the company's assets, liabilities, and equity at a specific point in time.
Learning Objectives
- Comprehend the dynamics and variations in shareholders' equity.
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