Understanding Key Financial Measures: Common Stock, Retained Earnings, Stockholders’ Equity, Dividends, and Net Income in Social Science

Beginning common stock, Dividends, Ending retained earnings, Total stockholders’ equity, Net income

Which items are presented on the statement of changes in stockholders’ equity

1. Beginning common stock: Beginning common stock refers to the amount of equity capital that a company has received from issuing common stock at the beginning of the accounting period. This figure is typically found on the balance sheet and represents the amount of money that shareholders have invested in the company.

2. Dividends: Dividends are payments made by a company to its shareholders. They are typically paid out of the company’s earnings or profits, and are a way for the company to distribute some of its wealth to its owners. Most companies pay dividends on a regular basis, either quarterly or annually.

3. Ending retained earnings: Ending retained earnings refers to the amount of profits that a company has retained from previous periods. This figure is typically found on the balance sheet and represents the amount of money that the company has earned but has not distributed as dividends. Retained earnings are an important measure of a company’s financial health, as they represent the amount of money that the company has available to reinvest in its operations or to distribute to shareholders in the future.

4. Total stockholders’ equity: Total stockholders’ equity is the total value of the equity capital that a company has received from its shareholders. It is typically found on the balance sheet and represents the amount of money that shareholders have invested in the company, plus any profits that the company has retained from previous periods.

5. Net income: Net income is the amount of profit that a company has earned after deducting all of its expenses from its revenue. This figure is an important indicator of a company’s profitability and is typically found on the company’s income statement. It represents the amount of money that the company has earned from its operations over a specific period of time.

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