Which of the Statements Below Indicates That a Company Earned

question 97

Multiple Choice

Which of the statements below indicates that a company earned a net income for the period?

• A) The sum of the credits exceeds the sum of the debits in the Balance Sheet columns on the work sheet.
• B) The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.
• C) The sum of the debits exceeds the sum of the credits in the Income Statement columns on the work sheet.
• D) Cash inflows exceeded cash outflows.

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Definitions:

Legislation

The process of making or enacting laws, or the body of laws that have been enacted by a legislative body.

Enforceable

Capable of being put into effect or action according to legal principles or regulations.

Contract

A formal agreement among two or more participants that is legally binding and enforceable.

Sue

To initiate legal proceedings against another party in order to seek remedy or damages.