Question

Which of the following statment regarding financial statements is not correct?A. A balance sheet contains assets, liabilities, and stockholders' equity information.B. A statement of stockholders' equity reports revenues, net income, and expense information. C. An income statement shows revenues and dividends.D. A statement of cash flows shows cash inflows and outflows from operating, investing, and manufacturing activities.

Answer 1

Answer:

B. A statement of stockholders' equity reports revenues, net income, and expense information.

Explanation:

The statement of stockholders' equity shows the investment in equity that the stockholders have made towards the business. This statement also shows distributions out of profits that were made to the stockholders in form of dividends during the year.  Any reserves that are created by the company are regarded as part of the  stockholders' equity report.