The equity reporting for a Limited Liability Company is similar to that of a partnership but the changes in capital are shown on a statement of members' equity.

Question

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The statement of members' equity shows the changes in capital for a Limited Liability Company, which is similar to the equity reporting for a partnership. Therefore, the statement of members' equity is used to report changes in the members' ownership, similar to how a partnership reports changes in partner ownership on a statement of partners' equity.

The Equity Reporting for a Limited Liability Company Is Similar