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 the balances of real accounts, which are the ones that appear on the post-closing trial balance. The post-closing trial balance includes only real (permanent) account balances, not the nominal (temporary) accounts like revenues and expenses that are reset to zero and closed out to retained earnings at the end of the accounting period.

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