After Net Income or Loss is entered on the work sheet, the debit column total must equal the credit column total for the Balance Sheet pair of columns.

Question

Quizplus · Accepted Answer

This is true because the Balance Sheet pair of columns represent the assets and liabilities/equity of the company, and the net income/loss affects the equity section. Therefore, the overall equation must balance out, which means the total debits must equal the total credits.

After Net Income or Loss Is Entered on the Work