INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A deficit on your income/expense statement will have [an | no] effect on your balance sheet.
A)for the first item
B)for the second item
C)if neither item will correctly complete the statement.

Question

Quizplus · Accepted Answer

A deficit on the income/expense statement represents a loss or an expense in excess of revenue. This will reduce the net income and retained earnings on the balance sheet, having an effect on it. Therefore, the article "an" should be used to indicate the presence of an effect.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which