If the Balance Sheet and Statement of Owner's Equity Columns

question 114

Multiple Choice

If the Balance Sheet and Statement of Owner's Equity columns of a work sheet fail to balance when the amount of the net income is added to the Balance Sheet and Statement of Owner's Equity Credit column,the cause could be:

• A)An expense amount entered in the Balance Sheet and Statement of Owner's Equity Debit column.
• B)A revenue amount entered in the Balance Sheet and Statement of Owner's Equity Credit column.
• C)An asset amount entered in the Income Statement and Statement of Owner's Equity Debit column.
• D)A liability amount entered in the Income Statement and Statement of Owner's Equity Credit column.
• E)An expense amount entered in the Balance Sheet and Statement of Owner's Equity Credit column.

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Definitions:

Marginal Cost

The uptick in cumulative expenses that comes from producing an additional unit of a product or service.

Total Revenue

The total receipts from sales of a given quantity of goods or services.

Marginal Revenue

The supplementary financial gain obtained through the sale of one more unit of a good or service.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes.