Which of the following items is reported in the statement of stockholders' equity?

1. Net income.
2. Total assets.
3. Operating cash flows.
4. Total expenses.

Respuesta :

Answer:

1. Net income.

Explanation:

The statement of stockholder's equity is a combination of the common stock and retained earnings.  

The adjusting balance computation is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

The net income would be revenues minus expenses