If the Income Statement Debit and Credit columns on a work sheet are not equal after adding the respective columns,
A) an error has been made.
B) the company generated a net income.
C) the company incurred a net loss.
D) the liabilities must exceed the assets.
E) the company either generated a net income or incurred a net loss.

Question

Quizplus · Accepted Answer

The difference between the Income Statement Debit and Credit columns on a work sheet indicates either a net income (if credits exceed debits) or a net loss (if debits exceed credits). This difference is not an error or indicative of the relationship between liabilities and assets; it simply reflects the company's financial performance for the period.

If the Income Statement Debit and Credit Columns on a Work