The statement of stockholders equity shows changes in:

A Cash only

B All equity accounts including common stock, APIC, retained earnings, AOCI, and treasury stock

C Revenue only

D Liabilities only

✓ Correct Answer: Option B

This statement reconciles beginning and ending balances of all equity accounts, showing net income, dividends, share transactions, and OCI.

💡 Why is B) the correct answer?

The correct answer to the question "The statement of stockholders equity shows changes in:" is Option B: All equity accounts including common stock, APIC, retained earnings, AOCI, and treasury stock.

The other options — A) Cash only, C) Revenue only, D) Liabilities only — are incorrect for this CPA Exam Prep question. As explained above: This statement reconciles beginning and ending balances of all equity accounts, showing net income, dividends, share transactions, and OCI.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Financial Accounting (FAR) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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The statement of stockholders equity shows changes in:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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