Question

What information can be found on a statement of stockholders' equity?

a. A reconciliation of the cash account and the retained earnings account.
b. A reconciliation of the beginning and ending balances of all accounts that appears in the stockholders' equity section of the balance sheet.
c. A reconciliation of the operating, investing and financing activities of a firm.
d. A reconciliation of net profit or loss and the cash account.

Answer 1

A statement of stockholders' equity provides information on the changes in a company's stockholders' equity over time, including a reconciliation of beginning and ending balances of relevant accounts. Option b

Step-by-step explanation:

A statement of stockholders' equity provides information on the changes in the stockholders' equity section of a company's balance sheet over a specific period of time. It includes a reconciliation of the beginning and ending balances of all accounts that appear in the stockholders' equity section, such as common stock, retained earnings, and additional paid-in capital.

This statement helps shareholders and investors understand how the stockholders' equity has changed due to various transactions, such as issuing stock, paying dividends, or net income/loss. Option b