1. In the balance sheet, how is stockholder equity similar to the statement of stockholder equity? a. Stockholder equity contains more details. b. Statement of stockholder equity shows a point in time. Stockholder equity shows activity over a period of time. c. Statement of stockholder equity shows activity over a period of time. Stockholder equity shows balances at a point in time. d. No differences.

2. True or false? Retained earnings = net income - dividends of the current year