Which of the following statements is not correct?
A)The audit trail should be used to trace data through the accounting records to find and correct errors.
B)The balance of the owner's capital account on the adjusted trial balance will usually be different than that reported on the post-closing trial balance.
C)The balance of the owner's capital account, as reflected on the post-closing trial balance, will match the amount reported on the income statement.
D)If the post-closing trial balance does not balance, there are errors in the accounting records.

Question

Quizplus · Accepted Answer

The balance of the owner's capital account on the post-closing trial balance reflects the owner's equity at the end of the period after closing entries are made, which includes the net income or loss from the income statement. However, it does not match the amount reported on the income statement, as the income statement reports revenues and expenses to determine net income or loss, not the balance of the owner's capital account.

Which of the Following Statements Is Not Correct