debit total and the credit total in the Income Statement columns of the work sheet should equal each other.

Question

Quizplus · Accepted Answer

In the Income Statement columns of the work sheet, the debit total typically represents expenses, and the credit total represents revenues. For a business to have a net profit, the credit total (revenues) should exceed the debit total (expenses). They are not expected to equal each other.

Debit Total and the Credit Total in the Income Statement