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:

Inventory Costs

The costs incurred to acquire, hold, and process inventory, including purchase prices, shipping, handling, and storage.

Gas Grills

Outdoor cooking appliances powered by gas fuel, designed for grilling food.

LIFO Periodic

A method of inventory valuation where the last items placed in inventory are the first ones to be recorded as sold, used in periodic inventory accounting systems.

Cost of Goods Sold

Expenses directly linked to the creation of goods sold by a business, such as materials and labor.