The statement of changes in equity shows the beginning balance in retained earnings,plus investments,less partners' withdrawals,the income or loss,and the ending balance in retained earnings.

Question

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The statement of changes in equity shows changes in a company's equity during a period, including the beginning and ending balances of equity, but investments and partners' withdrawals specifically pertain to partnerships and are not typically part of a corporation's retained earnings calculation. Retained earnings changes reflect net income or loss and dividends paid, not partners' withdrawals.

The Statement of Changes in Equity Shows the Beginning Balance