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

Question

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The statement of changes in partners' equity shows changes in each partner's equity account, including the beginning balance, additions due to investments and share of profits, deductions due to withdrawals and share of losses, and the ending balance. It does not specifically focus on retained earnings, which is a term more commonly associated with corporations.

The Statement of Changes in Partners' Equity Shows the Beginning