Net income is shown on the work sheet in the Income Statement debit column and the Balance Sheet credit column.

Question

Quizplus · Accepted Answer

Net income is a credit item in the Income Statement debit column and a debit item in the Balance Sheet credit column according to the rules of double-entry accounting. However, it is also acceptable to show net income in the Income Statement credit column and the Balance Sheet debit column, as long as the amounts are appropriately offset by other entries.

Net Income Is Shown on the Work Sheet in the Income