The Income Statement Columns on a Worksheet Have Subtotals as Follows

question 65

Multiple Choice

The income statement columns on a worksheet have subtotals as follows: debit column,$10,500,and credit column,$9,000.This indicates that:

• A)the company incurred a net loss of $1,500.
• B)the company earned a net income of $500.
• C)there was an error in the adjustments columns.
• D)there was an error in the income statement columns.

---

Definitions:

Entrepreneur's Forgone Interest

The potential revenue lost by investing in one's own business instead of utilizing those funds in an alternative investment.

Normal Profit

The level of profit necessary for a company to remain competitive in the market, covering opportunity costs, but not creating economic profit.

Economic Profit

The difference between the total revenue generated by a business and the total costs of production, including both explicit and implicit costs.

Entrepreneur's Potential Earnings

Represents the possible income or profits an entrepreneur can expect to make from their business ventures, considering risks and the opportunity cost of alternative employment.