After closing entries are posted the balance in the owner's capital account in the ledger will be equal to
A) the beginning owner's capital reported on the owner's equity statement.
B) the amount of the owner's capital reported on the balance sheet.
C) zero.
D) the net income for the period.

Question

Quizplus · Accepted Answer

After closing entries are posted, the balance in the owner's capital account will reflect the net income or loss for the period and any investments or withdrawals made by the owner. This updated balance will be reported on the balance sheet under the owner's equity section. Therefore, the balance in the owner's capital account will equal the amount of the owner's capital reported on the balance sheet.

After Closing Entries Are Posted the Balance in the Owner's