Which of the following statements is not correct?
A)If an account has a debit balance in the Trial Balance section of the worksheet and there is a credit entry in the Adjustments section, the credit amount is added when computing the balance to be shown in the Adjusted Trial Balance section of the worksheet.
B)Net loss is recorded on the worksheet in the Income Statement Credit column and the Balance Sheet Debit column.
C)Net income is recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column.
D)The difference between the total of the Income Statement Debit column and the total of the Income Statement Credit column of the worksheet represents either net income or net loss.

Question

Quizplus · Accepted Answer

A) is not correct because if an account has a debit balance in the Trial Balance section and there is a credit entry in the Adjustments section, the credit amount is subtracted, not added, to compute the balance in the Adjusted Trial Balance section.

Which of the Following Statements Is Not Correct