Question

6. Typically, the statement of stockholders' equity starts with retained earnings at the beginning of the year, adds net income, subtracts dividends paid, and ends up with retained earnings at the end of the year. a. True b. False

Answer 1

The correct answer is A. True.

Step-by-step explanation:

The statement of capital changes is a report that shows the changes that were generated within equity during a given period of time. This allows them to learn first-hand about the changes that have occurred within a period of time in order to make economic decisions about the resources invested in the organization.