Capital and Expenses are reported on the Statement of Owner's Equity.

Question

Quizplus · Accepted Answer

Capital and Expenses are not reported on the Statement of Owner's Equity. The Statement of Owner's Equity reports the beginning balance of the owner's equity, any investments or withdrawals made, and the net income or loss for the period, which is then used to calculate the ending balance of the owner's equity. Expenses are reported on the income statement, while capital is reported on the balance sheet.

Capital and Expenses Are Reported on the Statement of Owner's