Statement of Owner’s Equity

[STAYT-muhnt uv OH-nerz EK-wi-tee]

What is the definition of Statement of Owner’s Equity?

A financial statement that outlines the changes in the owner's equity, or capital account, over a specific financial period, detailing sources of increase or decrease such as profits, losses, investments, and withdrawals.

Using Statement of Owner’s Equity in an Example

In the Statement of Owner’s Equity, you can see that the owner's equity increased due to a net profit from business operations and was further adjusted by the owner's additional investment and withdrawal during the fiscal year.

Using Statement of Owner’s Equity in a sentence

During the meeting, the business owner reviewed the Statement of Owner’s Equity to explain to the investors the reasons behind the changes in the company's capital over the past year.

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