When a company has earned a net income,the net income amount is entered on the work sheet on the
A) credit side of the Income Statement columns and the debit side of the Balance Sheet columns.
B) debit side of both the Income Statement and the Balance Sheet columns.
C) debit side of the Income Statement columns and the credit side of the Balance Sheet columns.
D) credit side of both the Income Statement and the Balance Sheet columns.

Question

Quizplus · Accepted Answer

Net income is a credit to the Income Statement and a debit to the Retained Earnings account on the Balance Sheet.

When a Company Has Earned a Net Income,the Net Income