The Income Statement columns in the work sheet show that debits total $55,800 and credits total $62,705. What does this information mean to the accountant?
A) Net income is equal to $6,905.
B) Net loss is equal to $6,905.
C) The accounts are out of balance, indicating an error has been made.
D) The accounts have not been updated.

Question

Quizplus · Accepted Answer

The difference between credits and debits ($62,705 - $55,800) indicates a net income of $6,905.

The Income Statement Columns in the Work Sheet Show That