If the Total Debits Exceed Total Credits in the Statement

question 72

Multiple Choice

If the total debits exceed total credits in the statement of financial position columns of the worksheet, equity

• A) will increase because net income has occurred.
• B) will decrease because a net loss has occurred.
• C) is in error because a mistake has occurred.
• D) will not be affected.

---

Definitions:

Federal Labor Laws

Laws established by the federal government to regulate labor practices, protect workers' rights, and manage relations between unions, employees, and employers.

Stock Options

A form of employee benefit that gives an employee the right, but not the obligation, to purchase company stock at a set price within a specific time period.

Hourly Employees

Workers who are paid for the number of hours they work, rather than receiving a fixed salary.

Nonverbal Communication

The transmission of messages or signals through a non-linguistic means such as facial expressions, body language, gestures, and tone of voice.