Final answer:
The statement provided about the order of elements in the statement of owner's equity is false. The correct sequence includes beginning capital, owner's contributions, net income or net loss, drawings, and ending capital.
Step-by-step explanation:
The usual presentation of the statement of owner's equity starts with the beginning capital, but there is a slight error in the sequence provided. The correct order should be: (1) beginning capital, (2) add: owner's contributions, (3) add: net income or subtract net loss, (4) less: drawings, and finally (5) ending capital. Therefore, the statement provided in the question is False.
It's important to understand the elements that contribute to the owner's equity. The net income or loss affects the owner's equity by increasing it in case of a profit, or decreasing it if there is a loss. Owner's contributions increase equity, while drawings, which are withdrawals of business assets by the owner for personal use, decrease it. The ending capital is the final amount of owner's equity at the end of the period.