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#cfa-level-1 #reading-23-financial-reporting-mechanics
A statement of retained earnings can be viewed as a component of the statement of stockholders’ equity, which shows all changes to owners’ equity, both changes resulting from retained earnings and changes resulting from share issuance or repurchase.
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3.2. Accounting Equations
ements noted previously serve as the inputs for equations that underlie the financial statements. This section describes the equations for three of the financial statements: balance sheet, income statement, and statement of retained earnings. <span>A statement of retained earnings can be viewed as a component of the statement of stockholders’ equity, which shows all changes to owners’ equity, both changes resulting from retained earnings and changes resulting from share issuance or repurchase. The fourth basic financial statement, the statement of cash flows, will be discussed in a later section. The balance sheet presents a company’s financial position at a pa


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