$1.$ Provide a comprehensive summary for each step of the accounting cycle and give an example of each step of the accounting cycle.

Answer the following questions related to the Multiple$-$Step Income Statement & Statement of Retained Earnings modules:

$2.$ Why would a company prefer to use the multiple$-$step income statement rather than the single$-$step? A company would prefer to use the multiple$-$step income statement rather an the single$-$step, as it allows for a deeper analysis of the margins and it provides a more accurate representation of the cost of goods sold and it separates all of the operation revenue and expenses to the non$-$operational ones. A single$-$step statement just reports using a single equation to get the net income.

$3.$ Explain how a company calculates its retained earnings and what affects the increases and decreases in the account. Retained earnings are classified as an equity on the account and will have a credit balance, with it be calculated. The beginning retained earnings balance is added to the net income or reduced by a net loss and the dividend payouts are subtracted. RE$=$BP$+$ Net Income$/$Loss $$ Cash dividends $$ Stock dividends. What affects the increase and decrease in the accounts are dividends that are paid out to the shareholders, and any changes in the net income such as any expenses, revenue and investments.

$4.$ Discuss the different elements that can be found in the stockholders' equity section of a balance sheet. Describe each element.