The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance.

Question

Quizplus · Accepted Answer

The income statement reports revenues and expenses for a specific period and does not include balance sheet accounts, which are the accounts that appear on the post-closing trial balance. The post-closing trial balance includes only permanent accounts (assets, liabilities, and equity) and not the temporary accounts (revenues, expenses, dividends) that are closed to equity and appear on the income statement.

The Amounts Appearing on an Income Statement Should Agree with the Amounts