On a worksheet, the income statement debit column totals $10,000 and the credit column totals $9,800. 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 company's revenues, expenses, and net income (or loss) for a specific period of time. If the debit column (expenses) is greater than the credit column (revenues), it means the company had a net loss. In this case, the difference between the two columns is $200 ($10,000 - $9,800), so the company had a net loss of $200. Therefore, choice A is correct.

On a Worksheet, the Income Statement Debit Column Totals $10,000