Asked by Sonia Sheikh on May 18, 2024
Verified
After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must
A) be the same amount as the total amount of the Income Statement Debit and Credit columns
B) equal each other
C) be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
D) not be equal to each other and need not be the same total amounts as any other pair of columns on the end-of-period spreadsheet
Net Income
The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's profitability.
- Analyze how adjustments on the end-of-period spreadsheet impact financial statements.
Verified Answer
MK
Marni Kinne-LutesMay 18, 2024
Final Answer :
B
Explanation :
The Balance Sheet Debit and Credit columns must equal each other as the Balance Sheet follows the accounting equation of Assets = Liabilities + Equity, which means that the total Debits must always equal the total Credits. The other options are not correct as they do not follow the basic principles of accounting.
Learning Objectives
- Analyze how adjustments on the end-of-period spreadsheet impact financial statements.
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