If the Total Debit Column Exceeds the Total Credit Column

question 211

Multiple Choice

If the total debit column exceeds the total credit column of the income statement columns on a worksheet then the company has

• A) earned net income for the period.
• B) an error because debits do not equal credits.
• C) suffered a net loss for the period.
• D) to make an adjusting entry.

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Definitions:

Waste Water

Water that has been used and contaminated, making it unsuitable for further use without treatment.

Machinery

Equipment consisting of one or more machines that perform specific tasks, usually within an industrial or manufacturing process.

Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

User Cost

Refers to the cost associated with the consumption of a good which decreases its remaining value for future use.