What component is found in the statement of shareholders equity?

In the statement of shareholders' equity, contributed capital is a key component. Contributed capital refers to the money that shareholders have invested in the company, typically through the purchase of stock. This account reflects the amount paid by investors for shares of stock and is a crucial part of how equity is structured within a company. The statement of shareholders' equity provides insight into how the company’s equity is changing over time, showing contributions from investors, retained earnings, and any distributions to shareholders.

While net income is also related to equity, as it can affect retained earnings, it is not classified as a component of the statement of shareholders’ equity itself. Instead, net income is reported on the income statement. Revenue is reported on the income statement as well and is not an element of shareholders' equity. Liabilities, on the other hand, represent obligations of the company and are found on the balance sheet, not in the shareholders' equity section. Thus, contributed capital stands out as a fundamental element of the statement of shareholders' equity.