of various columns from the work sheet are shown below. What is net income or loss?
$$\begin{array} { | l | l | l | l | }
\hline \text { Income Statement } & & \text { Balance Sheet } & \
\hline \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
\hline \$ 6,800 & \$ 9,500 & \$ 7,400 & \$ 4,700 \
\hline
\end{array}$$
A) Net loss of $6,800
B) Net loss of $2,700
C) Net income of $4,700
D) Net income of $2,700

Question

of various columns from the work sheet are shown below. What is net income or loss?
$$\begin{array} { | l | l | l | l | } 
\hline \text { Income Statement } & & \text { Balance Sheet } & \
\hline \text { Debit } & \text { Credit } & \text { Debit } & \text { Credit } \
\hline \$ 6,800 & \$ 9,500 & \$ 7,400 & \$ 4,700 \
\hline
\end{array}$$
A) Net loss of $6,800
B) Net loss of $2,700
C) Net income of $4,700
D) Net income of $2,700

Quizplus · Accepted Answer

Net income is calculated by subtracting total debits from total credits in the Income Statement column. Here, it's $9,500 (Credit) - $6,800 (Debit) = $2,700. This is a net income, not a loss, because the credits (revenues) exceed the debits (expenses).

Of Various Columns from the Work Sheet Are Shown Below