In completing the work sheet,what is the reason for adding the net income for the year to the Balance Sheet Credit column?
A) Owner's equity is not up-to-date.
B) Cash is not up-to-date.
C) Owner's withdrawal is not up-to-date.
D) Sales is not up-to-date.

Question

Quizplus · Accepted Answer

Net income for the year increases the owner's equity, which is reported in the Balance Sheet Credit column as a credit balance. Including the net income in this column ensures that the owner's equity is up-to-date and accurately reflects the business's financial position.

In Completing the Work Sheet,what Is the Reason for Adding