When preparing the financial statements of a business, which of the following statements concerning the Equity figure found in the Balance Sheet is correct?

a.It is increased by a Net Loss during the financial period

b.It is decreased by any Drawings made by the owners

c.It is the owners claim to the Liabilities of the entity after deducting Assets

d.It is the amount owed by the entity to both outside and internal parties

e.It is fixed at the amount initially contributed when the business was formed