The Difference Between the Totals of the Debit and Credit

question 99

Multiple Choice

The difference between the totals of the debit and credit columns of the Adjusted Trial Balance columns on a work sheet

• A) is the amount of net income or loss
• B) indicates there is an error on the work sheet
• C) is not unusual when preparing the work sheet
• D) is the net difference between revenue, expenses, and dividends

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Definitions:

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.

Operating Income

The profit realized from a business's ongoing operations, calculated before taxes and interest payments are deducted.

Variable Cost

Costs that fluctuate in direct proportion to changes in production volume or activity levels.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.