Question

Which of the following is true regarding the end-of-period spreadsheet? a.Closing entries are entered in the Adjustments columns. b.The Adjustments columns need not be totaled. c.Amounts are read across a row and added or subtracted to determine the amounts to insert in the Adjusted Trial Balance columns. d.The difference in the totals of the Adjustments columns indicates the net income or loss for the period.

Answer 1

Answer: C) Amounts are read across a row and added or subtracted to determine the amounts to insert in the Adjusted Trial Balance columns.

Explanation: End-of spread sheet is a part of the accounting cycle which is optional. This cycle of this spreadsheet has the flow from the start to end for every element in accounting. It is also known as worksheet.

This sheet is used in the journal entries ,adjusted trial balance ,closing entries etc.The amount of the accounts are firstly read in a row and then implemented to the adjusted trail balance columns.

Other statements are incorrect because adjustment trial balance is made for verification of adjusting entries are inserted and made correctly.Thus, the correct option is option(c).