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

question 39

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 are $37,875 and $32,735, respectively. What is the amount of net income or net loss for the period?

• A) $5,140 net income
• B) $37,875 net loss
• C) $5,140 net loss
• D) $32,735 net income

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Definitions:

Internal Control

Systems and procedures implemented by a company to ensure integrity in financial reporting, compliance with laws and regulations, and effectiveness in operations.

Internal Control

A system of policies, procedures, and measures designed to protect assets, ensure accurate financial reporting, compliance with laws and regulations, and achieve effective and efficient operations.

Safeguarded Assets

Assets that are protected against loss, theft, or unauthorized use through various security measures and controls.

Accurate Business Information

Reliable, precise, and up-to-date data or facts about a company's operations, financials, and strategy, crucial for decision-making.