The amount of net income (or loss)will appear on the debit side of the Income Statement columns in a worksheet if:
A)Revenue exceeds total expenses for the period.
B)The trial balance is out of balance.
C)Dividends are more than the income or loss for the period.
D)There is a net loss for the period.

Question

Quizplus · Accepted Answer

Net income (or profit) is the excess of revenue over total expenses for the period. Therefore, if revenue exceeds total expenses, there will be a net income, which will appear on the debit side of the Income Statement columns in a worksheet. Option B is incorrect as a trial balance error would not affect the determination of net income. Option C is incorrect as dividends do not affect the calculation of net income. Option D is incorrect as a net loss will appear on the credit side of the Income Statement columns in a worksheet.

The Amount of Net Income (Or Loss)will Appear on the Debit