When a Company Has Earned a Net Income, the Net

question 70

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

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Definitions:

Fraudulent Misrepresentation

(1) The tort that occurs when a misrepresentation is made with intent to facilitate personal gain and with the knowledge that it is false. (2) In contracts, a false representation of a material fact that is consciously false and is intended to mislead the other party. Also called intentional misrepresentation.

Intent To Deceive

The deliberate intention to mislead or trick someone into believing something that is not true.

Nondisclosure

The failure to provide pertinent information about a projected contract.

European Courts

Judicial institutions in Europe, including the Court of Justice of the European Union and the European Court of Human Rights, which handle matters ranging from EU law to human rights issues.