On the work sheet,account balances are "extended" from the
A)Adjusted Trial Balance columns to the Income Statement or Balance Sheet columns.
B)Income Statement and Balance Sheet columns to the financial statements.
C)Trial Balance and Adjustments columns to the Adjusted Trial Balance columns.
D)Trial Balance columns to the Adjusted Trial Balance columns.

Question

Quizplus · Accepted Answer

The purpose of extending account balances is to transfer the adjusted balances from the Adjusted Trial Balance columns to the appropriate sections of the financial statements, such as the Income Statement or Balance Sheet columns. Therefore, option A is the correct choice. Options B, C, and D are incorrect because they either refer to other steps in the accounting process or do not accurately reflect the purpose of extending account balances.

On the Work Sheet,account Balances Are "Extended" from the