The Income Statement Debit column exceeds the Income Statement Credit column on a work sheet. This indicates
A) a net income for the company.
B) a net loss for the company.
C) that mistakes were made in the preparation of the work sheet.
D) the owner's Capital account increased during the year.
E) the inventory increased during the year.

Question

Quizplus · Accepted Answer

A debit balance in the Income Statement column indicates that expenses exceed revenues, resulting in a net loss for the company.

The Income Statement Debit Column Exceeds the Income Statement Credit