If the Credit Subtotal Is Greater Than the Debit Subtotal

question 80

Multiple Choice

If the credit subtotal is greater than the debit subtotal in the Income Statement columns of a worksheet, the difference

• A)indicates that the company incurred an operating loss during the period
• B)could represent payment of dividends by the entity during the period
• C)indicates that an error has been made in the accounting process
• D)indicates that the company earned a net income during the period

---

Definitions:

Negotiable Instruments

Financial documents that are transferable from one party to another, promising to pay a specified amount either on-demand or at a future date.

Negotiable Instrument

A formal document that ensures the payment of a certain sum of money, either upon request or at an agreed moment, with the document specifying the individual responsible for payment.

Bearer Instrument

A type of negotiable instrument that is not registered to a specific owner and can be transferred by possession alone.

Order Instrument

A financial document that is made payable to a specific individual or entity, requiring endorsement for transfer or payment.