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

question 125

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:

Expected Rate

The anticipated return on an investment over a specific period.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of numerical data from its mean.

Zero Standard Deviation

A statistical measure indicating that all values within a data set are identical.

Risk-Free Asset

A financial instrument that is considered to have no risk of financial loss, typically government bonds.