On a Worksheet,the Balance Sheet Debit Column Total Is $1,000

question 36

Multiple Choice

On a worksheet,the balance sheet debit column total is $1,000 and the credit column total is $2,000.Which of the following statements is correct?

• A)The company had a net income of $1,000.
• B)The company had a loss of $1,000.
• C)The company's expenses were greater than revenues.
• D)None of the above are correct.

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Definitions:

Direct Labor-Hours

The total number of labor hours spent on producing a single unit of a product or service.

Fixed Manufacturing Overhead

Costs that do not vary with production volume, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Manufacturing Overhead

Costs that vary with production volume, such as indirect materials and utilities, related specifically to the manufacturing process.