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:

Favorable Variances

Differences between actual and budgeted financial performance that result in a better-than-expected financial position.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful tool for performance evaluation.

Variable Costs

Costs that vary directly with the level of production or business activity. Examples include raw materials, packaging, and direct labor.

Fixed Costs

Fixed Costs are business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and loan payments.