After the Account Balances Have Been Extended from the Adjusted

question 34

True/False

After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet Debit and Credit columns is net income or net loss.

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Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to check the mathematical accuracy of the accounts' balances.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals in the accounting period.

Operating Activities

Activities that relate to the primary business operations of a company, including production, sales, and delivery of the company's products and services.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.