A Statement of owner's equity shows the change in capital.

Question

Quizplus · Accepted Answer

A statement of owner's equity is used to show the changes in a business's capital account over a period of time. This statement takes into account the owner's initial investment, any additional contributions or withdrawals, and the net income or loss earned by the business. The resulting figure is the ending balance of the capital account, which represents the owner's equity in the business.

A Statement of Owner's Equity Shows the Change in Capital