Where Does Net Income Appear on a Worksheet

question 91

Multiple Choice

Where does net income appear on a worksheet?

• A) Net income appears only in the income statement debit column.
• B) Net income appears in the balance sheet credit column and in the income statement debit column.
• C) Net income appears in the income statement credit column and in the balance sheet debit column.
• D) Net income appears only in the balance sheet credit column.

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate (coupon) over a specified period until its maturity.

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.

Debenture Agreement

A legal document that specifies the terms of a bond issue, promising repayment of borrowed money plus interest at fixed intervals.