Question

The statement of shareholders’ equity shows a __________ a) Computation of the number of shares outstanding used for earnings per share calculations. b) Reconciliation of net income to net operating cash flow. c) Reconciliation of the beginning and ending balances in shareholders’ equity accounts. d) Listing of all shareholders’ equity accounts and their corresponding dollar amounts.

Answer 1

The correct answer is C) Reconciliation of the beginning and ending balances in shareholders' equity accounts.

Step-by-step explanation:

The purpose of the stament of shareholders´ equity is to show the variations suffered by the different elements that make up the assets in a given period.

In addition to showing these variations, the statement of changes in equity seeks to explain and analyze each of the variations, their causes and consequences within the company's financial structure.