The net income for an accounting period can be determined using the worksheet by comparing the balances and determining the difference between the balances in the two
A)Income Statement columns only.
B)Balance Sheet and Income Statement Debit columns.
C)Balance Sheet and Income Statement Credit columns.
D)Income Statement or Balance Sheet columns.

Question

Quizplus · Accepted Answer

The net income can be determined by comparing the balances in both the Income Statement and Balance Sheet columns. The Income Statement columns show the revenue and expenses for the period, while the Balance Sheet columns show the assets, liabilities, and equity at the beginning and end of the period, which affects the net income. Therefore, both sets of columns are necessary to determine the net income for the period.

The Net Income for an Accounting Period Can Be Determined