Question Details

Return on common stockholders’ equity





1.	A detailed stockholders' equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record.


	2.	Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.



	3.	Return on common stockholders’ equity is computed by dividing net income by ending stockholders’ equity.



	4.	Many companies prepare a stockholders’ equity statement instead of presenting a detailed stockholders’ equity section in the balance sheet.



	5.	The stockholders’ equity statement shows the changes in each stockholders’ equity account and in total stockholders’ equity during the year.






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