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

question 46

Multiple Choice

After all of the account balances have been extended to the Balance Sheet columns of the work sheet,the totals of the debit and credit columns show debits of $37,686 and the credits of $41,101.This indicates that

• A)neither net income or loss can be calculated because it is found on the income statement
• B)the company has a net loss of $3,415 for the period
• C)the company has a net income of $3,415 for the period
• D)the amounts are out of balance and need to be corrected

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Definitions:

Fees Earned

Revenue generated from providing services to clients or customers.

Fees Payable

Liabilities owed for services rendered by a third party, such as professional consulting or management services, that have not yet been paid.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Unearned Revenue

Income received by a company for goods or services that have yet to be delivered or performed, also known as deferred revenue.