The difference between the debits and credits for each pair of columns in the Income Statement and Balance Sheet sections of the work sheet represents net income or net loss.

Question

Quizplus · Accepted Answer

This statement is true. The Income Statement lists all the revenues and expenses for the accounting period, and the difference between the total debits and total credits in this section represents net income or net loss. The Balance Sheet, on the other hand, lists all the assets, liabilities and equity accounts, and the difference between the total debits and credits in this section represents the balance of equity.

The Difference Between the Debits and Credits for Each Pair