Question

The first item appearing on the statement of owner's equity is Select one: a. net income b. the ending balance of owner's equity c. owner withdrawals d. the beginning balance of owner's equity

Answer 1

Answer:

The correct answer is letter "D": the beginning balance of owner's equity.

Explanation:

The statement of owner's equity reports the changes in a company's capital balance during a certain period. Thus, the transactions that increased or decreased stakeholder's equity is portrayed in this section. In the statement of owner's equity, the income earned during the current period is added to the beginning capital balance and the owner's equity withdrawals are deducted.

The statement of owner's equity shows at its head the Beginning equity balance -initial money invested in the company over a period.