The Income Statement and Statement of Financial Position Columns of Reed

question 92

Multiple Choice

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

• A) income statement debit column and the statement of financial position credit column.
• B) income statement credit column and the statement of financial position debit column.
• C) income statement debit column and the income statement credit column.
• D) statement of financial position debit column and the statement of financial position credit column.

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Definitions:

Nonprogrammed Decisions

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Problem Solving

The process of identifying a problem, devising alternative solutions, and selecting and implementing the most effective solution.

Calculated Process

A methodical approach designed to achieve a specific outcome through deliberate and strategic planning.

Motivated Blindness

The tendency of individuals to overlook unethical behavior when it is in their interest to remain ignorant.