Respuesta :
Stockholders’ Equity shows changes in common stocks and retained earnings account for an accounting period.
In the statement sheet, changes in a company’s share capital, accumulated reserves, and retained earnings are described for the reporting period. It details changes in the ownership stake in the company as well as how retained earnings or surplus is used from one accounting period to the next.
Stockholders Equity consists of two main accounts i.e.. Common stocks account and retained earning account. The profits from the sale of common stock issued by a corporation to raise money are added to its total shareholders’ equity but have no impact on retained earnings. However, once dividend payments are made to investors, common stock can have an effect on a company’s retained earnings.
To learn more about retained earning, refer this link.
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