Premiums and discounts. Question 5 Retained earnings: Generally consists of a company's cumulative net income less any net losses and didn inception. O Can only be appropriated by setting aside a cash fund ORepresent an amount of cash available to pay shareholders Are never adjusted for anything other than net income or dividends Represents the amount shareholders are guaranteed to receve uponcoay l MacBook Question 6 The statement of changes in stockholders' equity: O Is part of the statement of retained earnings O Shows only the ending balances in stockholders' equity O Describes changes in paid-in capital and retained earnings subcategories ODoes not include changes in treasury stock O Is reported by very few companies