Question Details

The income statement and statement of financial position columns



1.	If the total debits exceed total credits in the statement of financial position columns of the worksheet, equity
a.	will increase because net income has occurred.
b.	will decrease because a net loss has occurred.
c.	is in error because a mistake has occurred.
d.	will not be affected.

 
	2	The income statement and statement of financial positions columns of Reed Company's worksheet reflect the following totals:
					            
		    Income Statement		Statement of financial position	
		     Dr.		     Cr.		     Dr.		     Cr.	
		Totals	$58,000	$48,000	$34,000	$44,000

The net income (or loss) for the period is
a.	$48,000 income.
b.	$10,000 income.
c.	$10,000 loss.
d.	not determinable.



3.	The income statement and statement of financial position columns of Reed Company's worksheet reflect the following totals:
					
		    Income Statement		Statement of financial position	
		     Dr.		     Cr.		     Dr.		     Cr.	
		Totals	$58,000	$48,000	$34,000	$44,000

To enter the net income (or loss) for the period into the above worksheet requires an entry to the
a.	income statement debit column and the statement of financial position credit column.
b.	income statement credit column and the statement of financial position debit column.
c.	income statement debit column and the income statement credit column.
d.	statement of financial position debit column and the statement of financial position credit column.


	4.	The Statement of Financial Position columns of the worksheet contain data for what financial statement?
a.	Income Statement.
b.	Retained Earnings Statement.
c.	Statement of Cash Flows.
d.	None.




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