Failure to prepare closing entries will produce a misstated
A)total liabilities figure on the balance sheet.
B)total assets figure on the balance sheet.
C)owner's Capital account balance.
D)Income Summary account balance.

Question

Quizplus · Accepted Answer

Closing entries are used to transfer the balances of temporary accounts to the owner's capital account. If closing entries are not prepared, the owner's capital account balance will be misstated.

Failure to Prepare Closing Entries Will Produce a Misstated