The Income Statement Columns on the Worksheet Are Not Equal

question 56

Multiple Choice

The income statement columns on the worksheet are not equal because:

• A) a mistake has been made in the adjustments section.
• B) the columns have not been added up correctly.
• C) the unadjusted trial balance was incorrect.
• D) the difference is the profit or loss for the period.

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Definitions:

Primary Material

The main raw materials used in the production of goods or services, often a critical component in manufacturing processes.

Indirect Labor

Labor costs not directly tied to the production of goods or services, such as salary of supervisory staff.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life to reflect its decrease in value over time.

Store Equipment

Fixed assets specifically purchased for use in a retail store setting, such as shelving, cash registers, and display units.