After Net Income Is Entered on the End-Of-Period Spreadsheet, the Balance

question 206

Multiple Choice

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must

• A) be the same amount as the total amount of the Income Statement Debit and Credit columns
• B) equal each other
• C) be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
• D) not be equal to each other and need not be the same total amounts as any other pair of columns on the end-of-period spreadsheet

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Definitions:

1934 Act

Refers to the Securities Exchange Act of 1934, which regulates the trading of securities such as stocks and bonds in the U.S. and established the Securities and Exchange Commission.

Issuer

An entity that develops, registers, and sells securities to finance its operations, which can be corporations, governments, or municipal bodies.

Investors

People or organizations that invest money with the aim of achieving financial gains.

Rule 10b-5

A regulation enacted under the Securities Exchange Act of 1934 that prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.