After All of the Account Balances Have Been Extended to the Income

question 94

Multiple Choice

After all of the account balances have been extended to the income statement columns of the worksheet, the totals of the debit and credit columns are $172,300 and $176,900, respectively. It can be concluded the company has a:

• A)net loss of $4,600.
• B)net income of $4,600.
• C)net income of $176,900.
• D)net loss of $176,900.

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Definitions:

Nonlabor Income

Earnings derived from sources other than employment, such as investments, pensions, or inheritance.

Leisure

The time individuals spend away from work or essential activities, dedicated to relaxation, recreation, or hobbies.

Wage Rate

The amount of money paid to a worker per unit of time (hour, day, etc.), which can vary based on skill, occupation, and market conditions.

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments made over time.