Asked by Sandra Vappie on Jun 27, 2024

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When the end-of-period spreadsheet is complete, the Adjustments columns should have

A) total credits greater than total debits if a net income was earned
B) total debits greater than total credits if a net loss was incurred
C) total debits greater than total credits if a net income was earned
D) total debits equal to total credits

Adjustments Columns

Columns in accounting journals or ledgers used to make corrections or modifications to financial entries for accurate reporting.

Total Credits

The aggregate amount of credit entries made in an account or a financial statement.

Total Debits

The sum total of all debit entries made in a company's accounting ledger during a specific period.

  • Recognize the purpose and necessity of adjusting entries in the preparation of financial statements.
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ZK
Zybrea KnightJul 04, 2024
Final Answer :
D
Explanation :
The adjustments columns in the end-of-period spreadsheet are used to adjust the accounts to their proper balances at the end of the period. These adjustments should result in total debits equaling total credits. If total credits are greater than total debits or vice versa, it would indicate an error in the adjustments or in the accounting records.