In the Process of Completing a Work Sheet, the Accountant

question 166

Multiple Choice

In the process of completing a work sheet, the accountant determines that the Income Statement debit column totals $83,000, while the Income Statement credit column totals $65,000. To enter net income (or net loss) for the period into the work sheet would require an entry to

• A) it is not practical to enter Net Income (or Net Loss) on the work sheet.
• B) the Balance Sheet & Statement of Owner's Equity debit column and the Income Statement credit column.
• C) the Adjustments debit column and the Adjustments credit column.
• D) the Unadjusted Trial Balance debit column and the Adjustments credit column.
• E) the Income Statement debit column and the Balance Sheet & Statement of Owner's Equity credit column.

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Definitions:

Treasurer

A Treasurer is a financial officer responsible for overseeing the management and reporting of an organization's finances, ensuring proper handling of cash flow, investments, and financial planning.

Financial Manager

A professional responsible for managing an organization’s financial health by planning and directing investment activities, developing financial strategies, and managing risks.

Long-Term Sources

Financing options available to a business that have a repayment period of more than one year, such as bonds or long-term loans.

Marketable Securities

Financial instruments that are easily convertible into cash, typically with high liquidity and short maturity periods, such as stocks and bonds.