Question

Which of the following statements is not correct? Multiple Choice C ) The audit trial should be used to trace data through the accounting records to find and correct errors. 0 If the postclosing trial balance does not balance, there are errors in the accounting records. 0 The balance of the owner's capital account on the adjusted trial balance will ordinarily be different than that reported on the postclosing trial balance. 0 The balance of the owner's capital account, as reflected on the postclosing trial balance, will match the amount reported on the income statement.

Answer 1

The correct answer is "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."

Supporting explanations:

All of the remaining given statements except the above statement because the owner's capital is reported only on the balance sheet and the trial balance but the income statement do not contain any information relating to Owner's Capital Account, hence, there is no point of matching on the matching with income statement.

Therefore, the last option is not correct statement.