Question

When preparing a statement of owner's equity, an accountant looks to locate a business's net income on its ________?

Answer 1

When preparing a statement of owner's equity, net income is located on the business's T-account.

Step-by-step explanation:

When preparing a statement of owner's equity, an accountant looks to locate a business's net income on its T-account. The T-account separates the assets of a firm, on the left, from its liabilities, on the right. The net income is included on the assets side to balance the T-account and calculate the owner's equity.