When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also important to check the detail in the owner's capital account in the general ledger?

Question

Business

Destiny Cooley

16 May, 21:06

When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also important to check the detail in the owner's capital account in the general ledger?

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Answers (1)

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Jase Wang · Answer 1

d.

Explanation:

Based on the information provided within the question it can be said that it is important to check this information because there may have been additional investments made during the year reflected in the balance. Therefore without knowledge of these investments the final balance may seem incorrect in the eyes of the accountant.