The income statement debit column exceeds the income statement credit column on a worksheet. This indicates:
A)a net income for the company.
B)a net loss for the company.
C)that mistakes were made in the preparation of the worksheet.
D)the owner's capital account increased during the period.

Question

Quizplus · Accepted Answer

When the income statement debit column exceeds the credit column, it indicates the company has incurred a net loss, as expenses (debits) are greater than revenues (credits).

The Income Statement Debit Column Exceeds the Income Statement Credit