Which Of The Following Would Be Included On A Statement Of Owner's Equity? (Check All That Apply.)

A Statement of Owner’s Equity shows movements or changes in Owner’s Equity over a period of time. If the owner’s equity increases then it indicates that the owner’s claims in the business increased due to profitable activities, owner’s additional investments and withdrawals during the accounting period. It is prepared, in case of Sole Proprietorship and Partnership businesses, after the preparation of Income Statement (Statement of Comprehensive Income) but before the preparation of balance sheet (Statement of Financial Position) for the accounting period.

Format & Components Of Statement of Owner’s Equity

                                                                Name Of Business
                                                         Statement of Owner’s Equity
                                                         For The Period Ending On 31^st December

                                                                            $   

Capital at the beginning of period                   XXX

+ Net Income (Net Loss) for the period          XXX (XXX)

+Owner Investments                                        XXX

- Owner Withdrawals                                      (XXX)

                                                                        ______

Capital at the end of period                              XXX                                 

                                                                         ______

                                                                         ______

Opening capital for the current accounting period, in fact, is the ending capital of previous accounting period. If it is the first accounting period of business, then opening capital is the amount of assets or goods with which the owner started the business. In case of net profit / net income, which is calculated from Income Statement by deducted all the relevant expenses from all the revenues for the period, it is added to the opening capital. However, in case of net loss (expenses are greater than revenues for the current accounting period), it is deducted from beginning capital. Owner investments are additional or further capital introduced / invested during the accounting period which is added in the calculation. Owner Withdrawals or Drawings are deducted as these are withdrawal of goods or assets from the business by sole owner for his own personal or private use. Capital at the end of period (Ending or Closing Capital) or owner’s equity is the balance figure in the calculation of this statement.

Statement of Owner’s Equity shows the formula from which any missing figure is calculated if other items are given or can be found from the given accounting information.

So, the correct option of this multiple choice question (mcq) are B, C, E, F and G while other options A, D and H are incorrect choices here.