The Net Income (Or Loss) for the Period

question 142

Multiple Choice

The net income (or loss) for the period

• A) is found by computing the difference between the income statement credit column and the balance sheet credit column on the worksheet.
• B) cannot be found on the worksheet.
• C) is found by computing the difference between the income statement columns of the worksheet.
• D) is found by computing the difference between the trial balance totals and the adjusted trial balance totals.

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Definitions:

Operating Expenses

Ongoing costs for running a business that are not directly associated with creating the product or service.

Periodic Inventory System

A method for tracking inventory where the inventory count is physically updated at specific intervals, resulting in periodic adjustments.

Purchases Account

An account used in the accounting records to track the buying of merchandise for resale during an accounting period.

Temporary Account

An account that is cleared to zero at the end of an accounting period to calculate income and expenses for that period.