Question

The statement of stockholders' equity:

a. Explains the reasons for the difference between the beginning and ending balance of each account in the stockholders' equity category of the balance sheet.
b. Provides information about a company's cash inflows and outflows.
c. Serves as a link between the income statement and the balance sheet.
d. Describes the total change in net assets from all sources except investments by or distributions to the owners.

Answer 1

The statement of stockholders' equity serves as a link between the income statement and the balance sheet.

Step-by-step explanation:

The statement of stockholders' equity serves as a link between the income statement and the balance sheet. It explains the reasons for the difference between the beginning and ending balance of each account in the stockholders' equity category of the balance sheet. It does not provide information about a company's cash inflows and outflows, nor does it describe the total change in net assets from all sources except investments by or distributions to the owners.