After All the Account Balances Have Been Extended to the Balance

question 42

Multiple Choice

After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

• A)net income of $3,400.
• B)net loss of $3,400.
• C)$74,100 net loss.
• D)$74,100 net income.

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Definitions:

Polishing Labor

The labor cost associated with the finishing or polishing stage of manufacturing to enhance the appearance or functionality of a product.

Sales Budget

A financial plan detailing the expected revenues from sales of products or services over a specific period.

Production Budget

An estimate of the total units that must be produced in a given period to meet sales demands and ending inventory requirements.

Selling Expense Budget

A financial plan that estimates the anticipated selling expenses for a period, including costs related to sales personnel, advertising, and marketing activities.