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:

Gross Profit Ratio

The Gross Profit Ratio is a financial metric that compares gross profit to net sales, expressed as a percentage, indicating the efficiency of a company in managing its production and labor costs.

Rate of Return to Stockholders

The percentage of return investors receive from their shares in a company, including dividends and stock price appreciation.

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable amount within a given period.

Selling Inventory

Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.