On the worksheet, the difference between the debits and credits in the income statement columns would be the ending owner's equity balance.

Question

Quizplus · Accepted Answer

The income statement summarizes the revenues and expenses of a business over a period of time, and the difference between the two is the net income or loss. The ending owner's equity balance is the total value of the assets of the business minus the total value of its liabilities. The net income or loss is added to or subtracted from the beginning owner's equity balance to arrive at the ending owner's equity balance.

On the Worksheet, the Difference Between the Debits and Credits