On the work sheet, a loss is indicated if the total of the Income Statement Debit column exceeds the total of the Income Statement Credit column.

Question

Quizplus · Accepted Answer

The Income Statement Debit column includes expenses and losses, while the Income Statement Credit column includes revenues and gains. If the total of the Debit column (expenses and losses) is greater than the total of the Credit column (revenues and gains), then the result is a net loss.

On the Work Sheet, a Loss Is Indicated If the Total