The Income Statement Columns in the End-Of-Period Spreadsheet Show That

question 65

Multiple Choice

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?

• A) There is a net income of $21,720.
• B) There is a net loss of $21,720.
• C) The accounts are out of balance, indicating that an error has been made.
• D) The accounts have not been updated.

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Definitions:

Machine Time

The duration for which a machine is operated or available for use in the production of goods or services.

Professional Accounting Program

A formal education and training program designed to provide knowledge and skills necessary for accounting careers.

Retail Price

The total cost that consumers pay for a product in retail stores, including markups by retailers.

Wholesale Cost

The price charged by manufacturers or distributors to retailers for products, typically lower than the retail price.