After all of the account balances have been extended to the Balance Sheet columns of the , the totals of the debit and credit columns show debits of $37,686 and 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 debit and credit columns in the Balance Sheet columns of a trial balance indicates the net income or loss for the period. Since the credits exceed the debits by $3,415, this means the company has a net loss of $3,415 for the period.

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