In which of the columns of the worksheet would a loss be found?
A)In the balance sheet credit column and the Income statement debit column
B)In the trial balance debit column,the adjusted trial balance debit column and the balance sheet debit column
C)In the balance sheet debit column and the Income statement credit column
D)In the trial balance credit column,the adjusted trial balance credit column and the balance sheet credit column

Question

Quizplus · Accepted Answer

A loss would be found in the balance sheet debit column and the Income statement credit column. The balance sheet shows the overall financial position of a company while the Income statement shows the performance over a specific period. A loss is a negative result on the Income statement, and it reduces the net income that appears on the same side in the balance sheet. Therefore, the loss would appear in the Income statement credit column and the balance sheet debit column.

In Which of the Columns of the Worksheet Would a Loss