Respuesta :
The statement of stockholders' equity reports the changes in each equity account balance over time. Hence, option (d) is the relevant option.
What is Stockholder equity?
Shareholder equity, also known as shareholders' equity or owners' equity, is the amount of assets left over for shareholders to utilise after all liabilities have been settled. It can be calculated by adding a company's share capital and retained earnings and subtracting its treasury shares, or it can be calculated by subtraction of a company's total assets from its total liabilities. Shareholders' equity may consist of common stock, paid-in capital, retained earnings, and treasury stock, among other things. Conceptually, a company's stockholders' equity can be used to determine how much cash it has on hand. If this number is negative, a company might be in danger of going out of business, especially if there is a sizable debt obligation.
There are two main sources of shareholders' equity, which is also known as the company's book value. The money that was initially and subsequently invested in the business through share offerings is the first source. The company's retained profits, which are accumulated over time as a result of its operations, make up the second source. Retained earnings typically make up the greatest portion, especially when dealing with businesses that have been around for a while.
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