By looking at a statement of owner's equity,you can evaluate the effect of drawings on the ending balance in owner's equity.

Question

Quizplus · Accepted Answer

The statement of owner's equity shows the beginning balance, any contributions made by the owner, any net income earned, and any withdrawals or drawings made by the owner. By looking at this statement, you can see how much the owner withdrew from the business and how it affected the ending balance in owner's equity.

By Looking at a Statement of Owner's Equity,you Can Evaluate