The Income Statement and Statement of Financial Positions Columns of Reed

question 125

Multiple Choice

The income statement and statement of financial positions columns of Reed Company's worksheet reflect the following totals:
$\begin{array} { l }&\text { Income Statement }&&\text { Statement of financial position }\\&Dr&Cr&Dr&Cr\\ \text {Totals } &\$58,000&\$48,000&\$34,000&\$44,000\\\end{array}$
The net income (or loss) for the period is

• A) \( \$ 48,000 \) income.
• B) \( \$ 10,000 \) income.
• C) \( \$ 10,000 \) loss.
• D) not determinable.

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Definitions:

Report Form

A layout for financial statements where the balance sheet is presented with assets followed by liabilities and equity in a vertical format.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment, including assets, liabilities, and equity.

Statement of Owner's Equity

A financial statement displaying the changes in the equity of a company over a reporting period, including investments by and distributions to owners.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from total revenue.