After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must
A) be the same amount as the total amount of the Income Statement Debit and Credit columns
B) equal each other
C) be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
D) not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet

Question

Quizplus · Accepted Answer

The Balance Sheet Debit and Credit columns must equal each other because the Balance Sheet follows the accounting equation where Assets = Liabilities + Equity. Therefore, the total Debits and Credits must be equal. It is not necessary for them to be the same amount as the total of any other columns on the worksheet.

After Net Income Is Entered on the End-Of-Period Spreadsheet, the Balance