Final answer:
The changes in the Cash in Bank account are not reported in the statement of changes in owner's equity but rather in the cash flow statement, reflecting the company's liquidity position. The Cash in Bank is an asset and is reported on the balance sheet while the statement of owner's equity accounts for equity changes.
Step-by-step explanation:
The changes in the Cash in Bank account are not reported in the statement of changes in owner's equity. This is because the Cash in Bank account reflects the company's liquidity position and is included in the balance sheet under current assets. The statement of changes in owner's equity, on the other hand, shows the movement in equity during a period as a result of profits earned, dividends paid, and any injections or withdrawals by the owner. It doesn't directly reflect transactions involving cash balances. Therefore, the correct answer is false.
The T-account is a visual representation used in accounting to depict the debit and credit sides of an account. Assets, such as cash, are on the left side, while liabilities and net worth are on the right side of the T-account. Eventually, the sum of the assets should always equal the sum of liabilities plus net worth, in order to balance the account. Changes in the Cash in Bank, which is an asset, would typically be recorded in the cash flow statement, which provides a detailed account of the cash entering and leaving a company.