Final answer:
The false statement is B) The Net Income amount is shown on both the Income Statement and the Balance Sheet. Net Income is only shown on the Income Statement, while the Ending Retained Earnings balance is shown on both the Owners Equity Statement and the Balance Sheet.
Step-by-step explanation:
The false statement in this question is option B) The Net Income amount is shown on both the Income Statement and the Balance Sheet. Net Income is an important financial measure that represents the profit or loss of a company for a specific period. It is calculated using the formula: Net Income = Total Revenue - Total Expenses. Net Income is only shown on the Income Statement, which is a financial statement that summarizes a company's revenues, expenses, and net income for a specific period of time.
On the other hand, the Ending Retained Earnings balance is shown on both the Owners Equity Statement and the Balance Sheet. Retained Earnings are the accumulated profits or losses of a company that have not been distributed to shareholders as dividends. The Ending Retained Earnings balance is carried forward from the previous year and is reported on the Owners Equity Statement, which shows the changes in equity during a specific period. It is also shown on the Balance Sheet, which provides a snapshot of a company's financial position at a specific point in time.
General Ledger contains all the accounts and their activity in a company. It records and tracks all the financial transactions, and each account within the General Ledger will show the activity associated with that account. The Trial Balance is prepared at the end of each accounting period to ensure that it is in balance. It lists all the debit and credit balances of all the accounts and helps to identify any errors or discrepancies before preparing the financial statements. Lastly, accounting transactions are first recorded into the Journal, which is the first step in the accounting cycle. The Journal is a chronological record of all the financial transactions, and from there, the transactions are posted to the General Ledger.