The year-end balance of the owner's capital account appears on

Question

BlackTom AI · Accepted Answer

Ending owner's capital equals beginning capital + owner investments + net income − owner withdrawals. This ending balance is computed on the statement of owner's equity and then reported on the balance sheet under owner's equity.

Relevant knowledge points:
- The income statement reports revenues and expenses to produce net income (or loss).
- The statement of owner's equity reconciles beginning capital to ending capital by adding owner investments and net income and subtracting withdrawals (drawings).
- The balance sheet reports assets, liabilities, and owners’ equity at a point in time; the ending owner’s capital is presented as part of owners’ equity.

Step-by-step reasoning with symbolic and numeric example:
1. Start with beginning capital (B). Add investments (I). Add net income (NI). Subtract withdrawals (W).
   Ending capital (E) = B + I + NI − W.
2. Example: B = $10,000; I = $2,000; NI = $5,000; W = $1,500.
   E = 10,000 + 2,000 + 5,000 − 1,500 = 15,500.
3. The statement of owner's equity shows this calculation and clearly displays E = $15,500 as the year-end balance.
4. The balance sheet, prepared at the same date, lists owners’ equity and includes the same year-end capital balance E = $15,500. Thus the exact figure produced on the statement of owner’s equity is carried to and appears on the balance sheet.

Why the correct answer is correct:
- The statement of owner's equity is the formal schedule used to compute and disclose the ending capital. The balance sheet presents that computed ending capital as part of owners’ equity at the reporting date. Therefore the year-end capital appears on both statements.

Why other statements are incorrect:
- The income statement shows net income but not the owner’s capital balance. The statement of cash flows shows cash inflows and outflows, not the owners’ equity reconciliation. Those statements therefore do not show the year-end capital balance itself.

Conclusion: The year-end balance of the owner's capital account appears on both the statement of owner's equity and the balance sheet, matching the provided answer.

The year-end balance of the owner's capital account appears on单项选择题

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