The usual presentation of the statement of owner's equity is
(1) Beginning capital,
(2) Net income or loss,
(3) Drawing,
(4) Owner's contributions, and
(5) Ending capital.

Question

The usual presentation of the statement of owner's equity is 
(1) Beginning capital, 
(2) Net income or loss, 
(3) Drawing, 
(4) Owner's contributions, and 
(5) Ending capital.

Quizplus · Accepted Answer

The usual presentation of the statement of owner's equity starts with beginning capital, adds net income (or subtracts net loss) and owner's contributions, subtracts drawings, and then shows ending capital. The correct order is (1) Beginning capital, (2) Add: Net income or subtract net loss, (3) Add: Owner's contributions, (4) Less: Drawings, and (5) Ending capital.

The Usual Presentation of the Statement of Owner's Equity Is