The Unequal Totals of the Debit and Credit Columns of the Adjusted

question 86

Multiple Choice

The unequal totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

• A) indicates the amount of net income or loss
• B) indicates there is an error on the work sheet
• C) is not unusual when preparing the work sheet
• D) is the net difference between revenue, expenses, and dividends

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Definitions:

Accounting Transaction

A financial event that changes the balance of two or more accounts in the ledger.

Accounting Time Period

A specific duration of time for which financial statements are prepared, typically a quarter or a year.

Depreciation Expense

A rephrased definition: The charge to income, representing the allocation of the cost of an asset over its useful life during a specific period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.