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

This statement is true. The Balance Sheet columns on the work sheet should have the same total for the debit and credit sides if everything has been recorded correctly. If there is a difference, it will be either a net income or net loss, which will be recorded on the Income Statement columns.

After the Account Balances Have Been Extended from the Adjusted