If the credit subtotal is greater than the debit subtotal in the Income Statement columns of a worksheet, the difference
A)indicates that the company incurred an operating loss during the period
B)could represent payment of dividends by the entity during the period
C)indicates that an error has been made in the accounting process
D)indicates that the company earned a net income during the period

Question

Quizplus · Accepted Answer

The credit subtotal in the Income Statement columns represents revenue earned during the period, while the debit subtotal represents expenses incurred. If the credit subtotal is greater than the debit subtotal, it means that the company earned more revenue than it spent on expenses, resulting in a net income for the period. Therefore, the correct answer is D.

If the Credit Subtotal Is Greater Than the Debit Subtotal