After net income is entered on the work sheet, 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 be equal to each other after net income is entered on the work sheet. This is because the balance sheet follows the accounting equation, which requires total assets to equal total liabilities and equity. Therefore, the debit and credit columns on the Balance Sheet must be equal in order to properly reflect the financial position of the company.

After Net Income Is Entered on the Work Sheet, the Balance