The Amount of Net Income Will Appear on the Debit

question 88

Multiple Choice

The amount of net income will appear on the debit side of the Income Statement columns on a work sheet,

• A) if total revenue exceeded total expenses for the period.
• B) if withdrawals have been made during the period.
• C) if total assets exceeded total liabilities for the period.
• D) if total expenses exceeded total revenue for the period.
• E) if net income exceeds the owner's withdrawals.

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Definitions:

Account Receivable

is money owed to a business by its customers for goods or services provided on credit.

Credit Evaluation

The assessment of the creditworthiness of a loan applicant or borrower.

Conditions

Specific requirements, terms, or circumstances that define how something is to be done or what must happen.

Cessation

The act of stopping or discontinuing a process, operation, or activity.