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

Question

Quizplus · Accepted Answer

The adjustment columns of the end-of-period spreadsheet should have total debits equal to total credits. This is because adjustments are made to ensure that the accounts reflect the correct balances at the end of the period, and any adjustments made should result in an equal increase or decrease to both sides of the account equation (debits = credits). If there is a net income or loss, it will be reflected in the Income Summary account, which is closed to Retained Earnings and not included in the adjustment columns.

When the End-Of-Period Spreadsheet Is Complete, the Adjustment Columns Should