That means the fiscal year of the business runs from July 1 of one year to June 30 of the next calendar year. Statement of changes in owner's equity As its name suggests, the statement of changes in owner's equity shows the changes that took place in the amount of owner's equity during a period of time. The statement starts with the amount of owner's equity on a given balance sheet date and summarizes the additions and subtractions from that amount during a specific period of time, usually a year. The finishing point, then, is the amount of owner's equity on the next balance sheet date. A balance sheet describes the financial situation of a company at a specific point in time.
Assets are things of value owned by a business.
Cash and equipment are common assets. There is a claim on every asset in a business. There are two groups who might have claims to a company's assets-creditors and owners. The claims of creditors are called liabilities . Liabilities are amounts the business owes to others outside the business, those who have loaned money to the company and have not yet been fully repaid for their loan.