The capital account in the ledger agrees with the balance sheet
A) after the adjusting entries have been posted.
B) after the closing entries have been posted.
C) after the income statement has been prepared.
D) after posting the reversing entries.

Question

Quizplus · Accepted Answer

The capital account is affected by closing entries, which transfer net income or loss to the capital account. Therefore, after closing entries have been posted, the capital account in the ledger should agree with the capital balance on the balance sheet. The other options are not directly related to the capital account or its balance.

The Capital Account in the Ledger Agrees with the Balance