The Income Statement Columns in the End-Of-Period Spreadsheet Show That

question 17

Multiple Choice

The income statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520.What does this information mean to the accountant?

• A)net income of $21,720
• B)net loss of $21,720
• C)the accounts are out of balance,indicating an error has been made
• D)the accounts have not been updated

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Definitions:

Transience

The state or condition of being temporary or short-lived.

Memory Sin

A term referring to the various kinds of inaccuracies or errors that human memory is prone to, such as transience, absent-mindedness, misattribution, and suggestibility, among others.

Decay

In the context of science, it often refers to the process by which organic substances break down into simpler forms of matter; in physics, it can refer to the decrease in number or function of particles over time.

Commission

A fee paid to an agent or employee for facilitating a sale or service.