If the total debit column exceeds the total credit column of the income statement columns on a worksheet then the company has
A) earned net income for the period.
B) an error because debits do not equal credits.
C) suffered a net loss for the period.
D) to make an adjusting entry.

Question

Quizplus · Accepted Answer

If the total debit column exceeds the total credit column of the income statement columns on a worksheet, it means that expenses exceed revenues and the company has suffered a net loss for the period. This is because expenses are debits and revenues are credits, so if the debit column is greater than the credit column, it means that expenses are higher than revenues. Therefore, the correct choice is C.

If the Total Debit Column Exceeds the Total Credit Column