On a worksheet,the income statement debit column totals $10,200 and the credit column totals $10,000.Which of the following statements is correct?
A)The company had a net loss of $200.
B)The company had a net income of $200.
C)The company's revenues were greater than expenses.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The income statement shows the revenues earned and expenses incurred by the company during a specific period. The total of the debit column usually represents expenses, while the credit column represents revenues. In this case, the debit column is higher than the credit column, indicating that the company incurred more expenses than it earned in revenue. Therefore, the company had a net loss of $200 (debit column total - credit column total = $10,200 - $10,000 = $200).

On a Worksheet,the Income Statement Debit Column Totals $10,200 and the Credit