The statement of owner's equity informs users about how much of the earnings were kept and reinvested in the company.

Question

Quizplus · Accepted Answer

The statement of owner's equity shows the changes in the owner's equity over a period of time, including the net income earned during that period and any dividends paid out to shareholders. Therefore, it informs users about how much of the earnings were kept and reinvested in the company.

The Statement of Owner's Equity Informs Users About How Much