Question

Which do you believe to be more important, the statement of stockholders’ equity or the statement...

Which do you believe to be more important, the statement of stockholders’ equity or the statement of retained earnings? Why?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Statement of retained earnings shows how much of the net income has been distributed as dividends and how much of net income add to the retained earnings.

The Statement of shareholder's equity shows the effect of net income, dividends paid, change in accounting policy, dividends paid, issue and redemption of shares etc.

Thus the information provided by the statement of shareholders' equity is in more detailed compared to the statement of retained earnings.

Therefore statement of shareholders' equity is more important than the statement of retained earnings.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The statement of stockholders’ equity—or the statement of retained earnings—reconciles and reports a firm’s net income,...
The statement of stockholders’ equity—or the statement of retained earnings—reconciles and reports a firm’s net income, dividends paid, shares issued and repurchased, and change in retained earnings during a particular year. Which of the following best describes a firm’s stockholders’ equity? Equity is the sum of what a corporation’s initial stockholders paid when they bought company shares and the earnings that the company has retained over its years of operations. Equity is the difference between a corporation’s paid-in capital and...
1- As more and more business functions are being outsourced overseas, do you believe audits of...
1- As more and more business functions are being outsourced overseas, do you believe audits of companies headquartered here in the United States will one day be outsourced overseas too? Why or why not? 2- All the different types of audits discussed in Module D, which types of audits do you believe are most important for governments? Why?   
n the statement of stockholders' equity, Retained Earnings had a beginning balance of $25,000. During the...
n the statement of stockholders' equity, Retained Earnings had a beginning balance of $25,000. During the period, the company reports a net income of $10,000 and a dividend of $4,000. The ending balance in the Retained Earnings account is:
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9. Common Stock Jan. 1 Balance 4,800,000 Apr. 14 Issued 30,000 shares 1,200,000 Dec. 31 Balance 6,000,000 Paid-In Capital in Excess of Par Jan. 1 Balance 960,000 Apr. 14 Issued 30,000 shares 300,000 Dec. 31 Balance 1,260,000 Treasury Stock Aug. 7 Purchased 12,000 shares 552,000 Retained...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 1,800,000 Apr. 14 Issued 16,200 shares 810,000 Dec. 31 Balance 2,610,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 288,000 Apr. 14 Issued 16,200 shares 194,400 Dec. 31 Balance 482,400 TREASURY STOCK Aug. 7 Purchased 2,700 shares 129,600 RETAINED EARNINGS Mar. 31 Dividend 46,000 Jan. 1 Balance 3,130,000 June. 30 Dividend...
Statement of stockholders’ equity Noric Cruises Inc. began the month of October with the following balances:...
Statement of stockholders’ equity Noric Cruises Inc. began the month of October with the following balances: Common Stock, $140,000; Additional Paid-In Capital, $3,125,000; and Retained Earnings, $12,200,000. During June, Noric issued for cash 30,000 shares of common stock (with a stated value of $1) at $18 per share. Noric reported the following results for the month ended October 31: Net income $2,250,000 Cash dividends declared 450,000 Prepare a statement of stockholders’ equity for the month ended October 31. If there...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Common Stock Jan. 1 Balance 800,000 Apr. 14 Issued 9,000 shares 360,000 Dec. 31 Balance 1,160,000 Paid-In Capital in Excess of Par Jan. 1 Balance 128,000 Apr. 14 Issued 9,000 shares 72,000 Dec. 31 Balance 200,000 Treasury Stock Aug. 7 Purchased 1,500 shares 55,500 Retained Earnings Mar. 31 Dividend 20,000 Jan. 1 Balance 1,390,000 June. 30 Dividend 20,000...
Chapter 12 - 11 Statement of The owners' equity in a corporation.Stockholders' Equity The stockholders’ equity...
Chapter 12 - 11 Statement of The owners' equity in a corporation.Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Common Stock Jan. 1 Balance 1,700,000 Apr. 14 Issued 15,600 shares 780,000 Dec. 31 Balance 2,480,000 Paid-In Capital in Excess of Par Jan. 1 Balance 272,000 Apr. 14 Issued 15,600 shares 187,200 Dec. 31 Balance 459,200 Treasury Stock Aug. 7 Purchased 2,600 shares 124,800 Retained Earnings Mar. 31 Dividend...
The following is the statement of stockholders' equity for Cloud Computer Service Company: Cloud Computer Service...
The following is the statement of stockholders' equity for Cloud Computer Service Company: Cloud Computer Service Company Statement of Stockholders' Equity For the Year Ended December 31, 20Y8 Common Stock Retained Earnings Totals Balances, January 1, 20Y8 $50,000 $17,068 $67,068 Net income ??? ??? Dividends (5,000) (5,000) Balances, December 31, 20Y8 $50,000 $18,905 $68,905 Calculate the net income to complete the statement.
Do you believe that the different functions of law are all equally important? Or are one...
Do you believe that the different functions of law are all equally important? Or are one or some more so than others? Why or why not?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT