If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.

Name: If a liability was extended into the Income Statement Credit column on the work sheet, net income would be understated.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Liabilities do not directly affect the income statement; they are reported on the balance sheet. The income statement reflects revenues and expenses, determining net income.

If a Liability Was Extended into the Income Statement Credit