The ending balance of the capital account appears as a separate line item on what two statements?
A) the trial balance and the income statement
B) the statement of owner's equity and the income statement
C) the statement of owner's equity and the balance sheet
D) the income statement and the balance sheet

Question

Quizplus · Accepted Answer

The ending balance of the capital account is reported on the statement of owner's equity as it represents the change in the owner's equity over the course of the accounting period. Additionally, it appears on the balance sheet as a component of owner's equity, as it represents the owner's investment in the business. It does not appear on the income statement as it relates to the overall financial position of the business rather than its revenues and expenses.

The Ending Balance of the Capital Account Appears as a Separate