After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet Debit and Credit columns is net income or net loss.

Question

Quizplus · Accepted Answer

The difference between the initial totals of the Balance Sheet Debit and Credit columns after extending account balances from the Adjusted Trial Balance on the work sheet represents the company's net income (if credits exceed debits) or net loss (if debits exceed credits). This difference is necessary to balance the two sides of the balance sheet.

After the Account Balances Have Been Extended from the Adjusted