Final answer:
The statement being asked about is the statement of stockholders' equity, which details changes in a company's equity over time. It reflects the financial transactions that affect shareholders' claims on the company's assets, including new stock issuance and dividends.
Step-by-step explanation:
The statement being referred to in the question is the statement of stockholders' equity, which summarizes the changes in the stockholders' equity account over a period of time. Stockholders or shareholders are people who own at least some shares of stock in a company, meaning they have a claim on partial ownership of the firm. The stockholders' equity statement is crucial in understanding how a company's financial capital health evolves and can be affected by a multitude of factors, such as the issuance of new stock, repurchase of existing stocks, dividends distributed to shareholders, and changes in earnings.
Companies can raise early-stage financial capital through personal savings, credit card use, or investments from angel investors and venture capital firms. It is also relevant to see the position of equity as the difference between the value of the assets a company holds and the liabilities it owes.