When a Company Has Earned a Net Income,the Net Income

question 43

Multiple Choice

When a company has earned a net income,the net income amount is entered on the work sheet on the

• A) credit side of the Income Statement columns and the debit side of the Balance Sheet columns.
• B) debit side of both the Income Statement and the Balance Sheet columns.
• C) debit side of the Income Statement columns and the credit side of the Balance Sheet columns.
• D) credit side of both the Income Statement and the Balance Sheet columns.

---

Definitions:

Privately Held Companies

Businesses whose shares are not traded on public stock exchanges and are usually owned by the company founders, management, or a group of private investors.

Acquisition Differential

The difference between the purchase price of an acquired entity and the fair value of its net assets.

Investor's Cost

The total amount expended by an investor to purchase shares of a company, including the purchase price and any associated fees or commissions.

Carrying Value

The monetary value of an asset as recorded on the balance sheet, factoring in depreciation, impairments, and amortization.