If the Balance Sheet columns of a work sheet fail to balance when the amount of profit is added to the Balance Sheet Credit column, the cause could be
A) An expense amount entered in the Balance Sheet Debit column
B) A revenue amount entered in the Balance Sheet Credit column
C) An asset amount entered in the Income Statement Debit column
D) A liability amount entered in the Balance Sheet Debit column
E) A liability amount entered in the Income Statement Credit column

Question

Quizplus · Accepted Answer

If the Balance Sheet columns fail to balance after adding the profit amount to the Credit column, it means that the Debit side has a larger total than the Credit side. This could be caused by a liability amount entered in the Balance Sheet Debit column. Liabilities typically have credit balances and should be entered on the Credit column. If entered on the Debit column, it will throw off the balance of the Balance Sheet.

If the Balance Sheet Columns of a Work Sheet Fail