The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?
A) net income of $21,720
B) net loss of $21,720
C) the accounts are out of balance, indicating an error has been made
D) the accounts have not been updated

Question

Quizplus · Accepted Answer

Net income (excess of revenues over expenses) = Total of Income Statement Credit column (revenues) - Total of Income Statement Debit column (expenses) = $77,520 - $55,800 =  $21,720

The Income Statement Columns in the End-Of-Period Spreadsheet Show That