The increase or decrease in the owner's equity is reported on the
A) income statement.
B) statement of owner's equity.
C) balance sheet.
D) All of these are correct.

Question

Quizplus · Accepted Answer

The statement of owner's equity provides information on changes in owner's equity during a period of time, including contributions, withdrawals, and net income or loss. Therefore, it is the most appropriate financial statement to report the increase or decrease in owner's equity. The income statement reports the revenues, expenses, and net income or loss of a business, while the balance sheet reports the financial position of a business at a specific point in time, including assets, liabilities, and equity.

The Increase or Decrease in the Owner's Equity Is Reported