What is a statement of owner's equity?


Quick Answer

A statement of owner's equity is a financial document that shows the value of a business at the end of an accounting cycle. It is one of the end-of-period accounting records a business is required to complete.

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Full Answer

The financial document begins with the opening balance for the accounting period. It then lists the additions to the owner's equity account, deductions from the account and a final balance. Additions to equity include investments of assets, such as cash to the business and net income. Deductions from equity include a net loss for the accounting period or withdrawals made by the owner as a salary.

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