After All of the Account Balances Have Been Extended to the Balance

question 42

Multiple Choice

After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the Debit and Credit columns are $36,755 and $32,735, respectively. What is the amount of net income or net loss for the period?

• A) $4,020 net income
• B) $36,755 net loss
• C) $4,020 net loss
• D) $32,735 net income

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Definitions:

Discharge

The release from legal obligation, such as the completion of a debt payment or the fulfillment of contractual duties.

Sole Proprietor

The owner of a sole proprietorship.

Installment Payments

Payments made regularly (monthly, quarterly, etc.) towards the settlement of a debt, allowing the debtor to pay off the amount owed over time.

Chapter 13 Debtor

An individual who files for Chapter 13 bankruptcy, seeking to reorganize their debts and establish a plan to repay creditors over time.