Asked by Chelsea Solis on Jun 14, 2024
Verified
On the end-of-period spreadsheet, the common stock and dividends account balances are extended to the Balance Sheet columns.
Common Stock
Common Stock denotes an equity interest in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and capital appreciation.
End-of-period Spreadsheet
A comprehensive worksheet that summarizes all accounts and balances at the end of an accounting period to facilitate the preparation of financial statements.
- Identify key elements of the accounting framework.
Verified Answer
YZ
yuxiang zhangJun 19, 2024
Final Answer :
True
Explanation :
The common stock and dividends accounts are both equity accounts, and their balances are typically included in the equity section of the balance sheet. Therefore, it is common practice to extend their balances to the balance sheet columns of the end-of-period spreadsheet.
Learning Objectives
- Identify key elements of the accounting framework.