Which of the following financial statements shows the changes in Owner's capital during a period of time?
A) Income statement
B) Statement of owner's equity
C) Statement of cash flows
D) Balance sheet

Question

Quizplus · Accepted Answer

The statement of owner's equity shows the changes in owner's capital during a period of time by summarizing the beginning balance, any additional investments or withdrawals, and the net income or loss for the period, all of which affect the ending balance of owner's equity. The income statement shows the revenue and expenses for a period of time, but does not directly indicate changes in owner's equity. The statement of cash flows shows the inflows and outflows of cash during a period, but does not directly indicate changes in owner's equity. The balance sheet shows the ending balances of assets, liabilities, and equity at a specific point in time, but does not show changes in owner's equity over a period of time.

Which of the Following Financial Statements Shows the Changes in Owner's