Which financial statement shows the owner's change in capital over time?

The Statement of Equity specifically reflects the changes in the owner’s equity in a business over time. This financial statement includes details such as the beginning equity balance, additional investments made by the owner, profits or losses generated during the period, and any withdrawals or distributions made to the owner. By providing a clear view of how the owner's capital fluctuates, it highlights the net impact of all these factors on the overall equity of the business.

In contrast, the Income Statement focuses primarily on revenues and expenses over a specific period, showing the company’s profitability rather than capital changes. The Balance Sheet provides a snapshot of the company's assets, liabilities, and equity at a single point in time, without detailing the movements within the equity section. The Statement of Cash Flow outlines the cash movements in and out of the business, categorized into operating, investing, and financing activities, but does not specifically address changes in equity accounts directly. Thus, the Statement of Equity is the correct choice for understanding changes in the owner's capital over time.