The statement of stockholders equity does not show the chang

The statement of stockholders\' equity does not show the changes to the Retained Earnings account because that information is provided in the statement of retained earnings. True False

Solution

This statement is FALSE. Because Stock holder\'s equity means paidup sharecapital, donated capital ( like bonus sharecapital) and Retained Earnings. Stock holder\' equity represents equity stake currently held on the books by the firm\'s equity investors.

Stock holder\'s equity = Total Assets - Total Liabilties OR

= Equity Share capital + Retained Earnings -Treasury Shares

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