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 liability amount entered in the Income Statement 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 revenue amount entered in the Balance Sheet Credit column.

Question

Quizplus · Accepted Answer

The Balance Sheet columns of a work sheet should always balance after the amount of profit is added to the Balance Sheet Credit column. If they don't balance, it means there is an error in the entries made. One possible cause could be that a liability amount was entered in the Balance Sheet Debit column. This would result in an unbalanced Balance Sheet since liabilities should be entered in the Credit column.

If the Balance Sheet Columns of a Work Sheet Fail