The statement of owner's equity shows the changes in Owner's capital. Which one of these statements is true?

Question

Quizplus · Accepted Answer

In the statement of owner's equity, decreases in Owner's equity result from net losses. This is because net losses result in a decrease in the overall value of the business, which is reflected in a decrease in owner's equity. Increases in owner's equity can result from additional owner investments, net income, or revenues earned.

The Statement of Owner's Equity Shows the Changes in Owner's