The year-end balance of the owner's capital account appears in
A) both the statement of owner's equity and the income statement
B) only the statement of owner's equity
C) both the statement of owner's equity and the balance sheet
D) both the statement of owner's equity and the statement of cash flows

Question

Quizplus · Accepted Answer

The year-end balance of the owner's capital account is a component of the owner's equity section of the balance sheet. It is also included in the statement of owner's equity, which shows the changes in the owner's equity during a period, including beginning and ending balances. The income statement and statement of cash flows do not directly report the year-end balance of the owner's capital account.

The Year-End Balance of the Owner's Capital Account Appears in