Balance Sheet Account Utilization
Why does the balance sheet not include all of the accounts listed on the adjusted trial balance?
A
Real accounts that do not close at the end of an accounting period cannot be used; only accounts that close to a zero balance, such as expense accounts, are included.
B
It only includes the most accurate and up-to-date account balances, which are found on the income statement.
C
Only real accounts that do not close at the end of an accounting period are included; accounts that close to a zero balance, such as expense accounts, are excluded.
D
It excludes information from the retained earnings statement if no dividends have been paid.