If the Balance Sheet and Statement of Owner's Equity Columns

question 60

Multiple Choice

If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be:

• A)An expense entered in the Balance Sheet and Statement of Owner's Equity Debit column.
• B)A revenue entered in the Balance Sheet and Statement of Owner's Equity Credit column.
• C)An asset amount entered in the Income Statement and Statement of Owner's Equity Debit column.
• D)A liability amount entered in the Income Statement and Statement of Owner's Equity Credit column.
• E)An expense entered in the Balance Sheet and Statement of Owner's Equity Credit column.

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Definitions:

Net Cash

Cash balance post the deducting of cash disbursements from cash receipts.

Investing Activities

Transactions involving the purchase or sale of long-term assets and other investments not included in cash equivalents.

Net Cash

Remaining cash after taking into account the cash received and spent.

Operating Activities

These are day-to-day actions that a company engages in, which are directly related to its primary operations such as sales, provision of services, and production.