The totals in the balance sheet accounts reflect
A)all the transactions recorded during the year
B)a beginning balance as of the last day of the current year
C)only the amounts in the accounts on the last day of the year
D)the total amount of the transactions recorded during the year

Question

Quizplus · Accepted Answer

The balances in the balance sheet accounts reflect only the amounts in the accounts on the last day of the year, as they represent the financial position of the company at a specific point in time. The other options are incorrect as they either include transactions from the entire year (A and D) or a beginning balance that is not relevant to the end-of-year financial position (B).

The Totals in the Balance Sheet Accounts Reflect