It is possible to determine the net income or loss for the period by:
A)taking adjusted trial balance amounts and subtracting expenses from revenues.
B)looking at the bottom line on the Income Statement.
C)taking post-closing trial balance amounts and subtracting expenses from revenues.
D)both A and B, which describe correct ways to determine the net income or loss for the period.

Question

Quizplus · Accepted Answer

Both A and B describe correct ways to determine the net income or loss for the period. Taking adjusted trial balance amounts and subtracting expenses from revenues is a common method used during the adjusting process, while looking at the bottom line on the Income Statement provides the net income or loss for the period after all expenses and revenues have been accounted for. The post-closing trial balance is used to ensure the accounts have been properly adjusted and closed, but it is not necessary to calculate the net income or loss for the period.

It Is Possible to Determine the Net Income or Loss