Question

Match the financial statement with respect to the reporting of stockholders' equity.

a. balance sheet
b. statement of stockholders'
c. reports amounts of shareholders'
d. equity at end of reporting periods.

a. balance sheet drop zone empty.
b. equity statement of stockholders'
c. equity drop zone empty.
d. reports sources of the changes in stockholders' equity accounts.

Answer 1

The balance sheet reports shareholders' equity at the end of a period, while the statement of stockholders' equity details changes in equity accounts over a period.

Step-by-step explanation:

To match the financial statement with respect to the reporting of stockholders' equity, here are the appropriate associations:

• a. Balance Sheet - This financial statement reports the amounts of shareholders' equity at the end of the reporting period.
• b. Statement of Stockholders' Equity - This statement reports sources of the changes in stockholders' equity accounts.

The balance sheet provides a snapshot of a company's financial condition at a specific point in time, including its equity, which is the value left for shareholders after all liabilities are deducted from assets. The statement of stockholders' equity, on the other hand, details the changes in equity over a period of time, showing how equity has increased or decreased due to actions such as issuing shares, dividends, or changes in retained earnings.