If the totals of the Income Statement debit and credit columns of a work sheet are $27,000 and $29,000, respectively, after all account balances have been extended, the amount of the net loss is $2,000.

Question

Quizplus · Accepted Answer

The difference between the debit column and the credit column of an Income Statement should represent the net income, not the net loss. In this case, the difference is $2,000, which means that the company had a net income of $2,000, not a net loss. Therefore, the correct answer is B.

If the Totals of the Income Statement Debit and Credit