What Is TRUE If the Income Statement Credit Column Exceeds

question 97

Multiple Choice

What is TRUE if the income statement credit column exceeds the income statement debit column on a worksheet?

• A) The company has a net income.
• B) The company has a net loss.
• C) The capital account decreased during the period.
• D) Total liabilities exceed total assets.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Capital Rationing

The process by which a company or organization allocates limited capital resources among various possible projects or investments.

Financial Resources

Assets in the form of money or other valuables that individuals or organizations can use to conduct transactions or invest.

NPV

Net Present Value represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.