Which of the Following Statements Is True If the Income

question 45

Multiple Choice

Which of the following statements 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)The total liabilities exceed total assets.

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Definitions:

Margin of Safety Percentage

The difference between actual sales and break-even sales, expressed as a percentage of actual sales.

Contribution Format

An income statement format that distinguishes between fixed and variable costs, highlighting the contribution margin.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Target Profit

The intended financial goal a company plans to achieve in a specific period through its operational activities.