The Balance Sheet Columns on the Worksheet Prepared for Boston

question 104

Multiple Choice

The balance sheet columns on the worksheet prepared for Boston Foods had subtotals as follows: debit column, $11,000, and credit column, $10,400. This information indicates that

• A) the company incurred a net income of $600.
• B) the company incurred a net loss of $600.
• C) an error was made when preparing the adjustments in the worksheet.
• D) a mathematical error was made in the worksheet.

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Definitions:

Transactions

Transactions involve the exchange of goods, services, or financial assets in return for something of value between two or more entities.

Supplies On Credit

Goods or materials obtained by a company on the agreement to pay for them at a later date.

Note Payable

A financial obligation represented by a formal written agreement to pay a specified sum of money at a future date.

Accounting Equation

The foundational equation in accounting, representing the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.