Asked by Katherine Fortune on Jun 15, 2024
Verified
After the account balances have been extended from the Adjusted Trial Balance columns on the end-of-period spreadsheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.
Adjusted Trial Balance
A list of all accounts and their balances after adjustments are made, used for preparing financial statements.
Net Loss
The amount by which total expenses exceed total revenues in a given period, indicating a negative financial performance.
- Equip oneself with knowledge on the adjusted trial balance, understanding its purpose and how it aids in preparing financial statements.
Verified Answer
TC
TERESA CHRISTINA ORTIZJun 20, 2024
Final Answer :
True
Explanation :
The difference between the initial totals of the Balance Sheet debit and credit columns reflects the company's Net Income or Net Loss, which is then added to or subtracted from the equity section to balance the columns.
Learning Objectives
- Equip oneself with knowledge on the adjusted trial balance, understanding its purpose and how it aids in preparing financial statements.