The stockholders’ equity section in the balance sheet shows: (which one out of the 4 below)
The ending balance in each stockholders’ equity account.
How each equity account changed over time.
The average balance in each stockholders’ equity account.
More information than the statement of stockholders’ equity.
and….
Return on equity would be calculated as: (which one out of the 4 below)
Net income divided by ending stockholders’ equity.
Net income divided by average stockholders’ equity.
Net income divided by average market value of equity.
Net income divided by ending market value of equity.
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