The balance sheet reports a company's assets, liabilities, and owner's equity. Generally, the amount of the owner's equity will have changed from the previous balance sheet amount due to:
the company's net income which flows into retained earning. The owner's additional investments in the business or the owner's withdrawals of business assets.

This is a very important question to know how to answer and practice. The question will most likely be asked. It's a quick and short answer. There is not much of an explanation has to be given. This is the type of question that can easily be overlooked and one can overthink the answer. Slow down.