The net income (or loss) for the period
A) is found by computing the difference between the income statement credit column and the statement of financial position credit column on the worksheet.
B) cannot be found on the worksheet.
C) is found by computing the difference between the income statement columns of the worksheet.
D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

Question

Quizplus · Accepted Answer

The net income (or loss) for the period is found by computing the difference between the income statement columns of the worksheet. The income statement columns will include all revenues and expenses for the period, and their difference will be the net income (or loss) for the period. The other choices are incorrect: A is not accurate because it refers to credit columns, which may not be relevant in all cases; B is incorrect because the net income can be calculated, and it is an important financial metric; D is incorrect because the trial balance only includes account balances, while the income statement considers the effects of transactions during the period.

The Net Income (Or Loss) for the Period