After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that
A)neither net income or loss can be calculated because it is found on the income statement
B)the company has a net loss of $3,415 for the period
C)the company has a net income of $3,415 for the period
D)the amounts are out of balance and need to be corrected

Question

Quizplus · Accepted Answer

The difference between the credits and debits is $3,415, which represents a net loss for the period. Therefore, choice B is correct. Choices A and C are incorrect because the net income or loss can be calculated from the totals of the Balance Sheet columns. Choice D is incorrect because the amounts are not out of balance, but rather represent the net loss for the period.

After All of the Account Balances Have Been Extended to the Balance