oboloo Glossary

Statement Of Owners Equity

oboloo Glossary

Statement Of Owners Equity

A Statement of Owners Equity is a financial document that tracks changes in the ownership interest of a company. It documents increases or decreases in equity due to business activities, investments, distributions and other transactions, providing insight into the overall financial health of the company. This statement is useful for investors, creditors and business owners alike, because it allows them to monitor the financial position of the company over time. By studying the Statement of Owners Equity, one can understand how much the company’s owners have contributed to the company, as well as how much value has been exchanged for goods, services and other activities. Ultimately, this statement offers an essential piece of information for creating strategies for success.