Question

When the end-of-period spreadsheet is complete, the adjustment columns should have:_________. a) total debits greater than total credits if a net income was earned b) total debits greater than total credits if a net loss was incurred c) total debits are equal to total credits d) total credits greater than total debits if a net income was earned

Answer 1

Answer:

C. Total debits are equal to total credits

Explanation:

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

Total debits equal to total credits.

When this happens, the trial balance is considered to be balanced.

If revenues are greater than expenses, then income statement will give a credit balance. If expenses are bigger than revenues, your income statement will show a debit balance.