On a Worksheet, the Balance Sheet Debit Column Total Is

question 95

Multiple Choice

On a worksheet, the balance sheet debit column total is $1,000 and the credit column total is $2,200. Which of the following statements is correct?

• A) The company had a net income of $1,200.
• B) The company had a loss of $1,200.
• C) The company's expenses were greater than revenues.
• D) There is a $1,200 error.

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Definitions:

Specialization and Trade

An economic concept where individuals or entities focus on the production of specific goods or services to trade for other goods or services, enhancing efficiency and productivity.

Efficient Scale

The level of production at which a firm achieves the lowest long-run average cost, with all inputs utilized most effectively.

Surplus

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.