In the Process of Completing a Work Sheet,the Accountant Determines

question 253

Multiple Choice

In the process of completing a work sheet,the accountant determines that the Income Statement debit column totals $83,000,while the Income Statement credit column totals $65,000.To enter net income (or net loss) for the period into the work sheet would require an entry to

• A)the Adjustments debit column and the Adjustments credit column.
• B)the Unadjusted Trial Balance debit column and the Adjustments credit column.
• C)it is not practical to enter Net Income (or Net Loss)on the work sheet.
• D)the Balance Sheet & Statement of Retained Earnings debit column and the Income Statement credit column.
• E)the Income Statement debit column and the Balance Sheet & Statement of Retained Earnings credit column.

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Definitions:

Adjusting Entry

A journal entry made in accounting to update the balances of accounts at the end of an accounting period.

Workweek

A fixed time period, typically structured from Monday to Friday, used to calculate hours worked and wages for employees.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, often expressed as an annual rate.

Note Payable

A written promise to pay a specified sum of money to a designated party by a certain date, often used in business financing.