Asked by Franchezka Mendoza on May 06, 2024
Verified
When the end-of-period spreadsheet is complete, the adjustment columns should have
A) total credits greater than total debits if a net income was earned
B) total debits greater than total credits if a net loss was incurred
C) total debits greater than total credits if a net income was earned
D) total debits equal to total credits
Net Loss
The amount by which a company's expenses exceed its revenues, resulting in a negative profit.
Adjustment Columns
In accounting, adjustment columns in a worksheet are used to record adjustments for accrued, deferred, and estimated items before preparing final financial statements.
- Evaluate the consequences of changes to the end-of-period spreadsheet on fiscal statements.
Verified Answer
TL
Timilehin LamoriuMay 09, 2024
Final Answer :
D
Explanation :
The purpose of the adjustment columns is to ensure that all accounts have been properly adjusted for the current period. Therefore, the total debits in the adjustment columns should always equal the total credits, regardless of whether the company earned a net income or incurred a net loss.
Learning Objectives
- Evaluate the consequences of changes to the end-of-period spreadsheet on fiscal statements.
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