Question

When the income statement debit column total is greater than the income statement credit column total on a worksheet, the business has a net income.

a.true
b.false

Answer 1

The statement is false; if the income statement debit column total is greater than the credit column, the business has a net loss, not net income.

Step-by-step explanation:

When the income statement debit column total is greater than the income statement credit column total on a worksheet, this indicates the business has a net loss, not a net income. This is because the income statement is meant to show revenue and gains in the credit column and expenses and losses in the debit column.

If the debits, which represent the expenses and losses, exceed the credits, which represent the revenues and gains, it means the company's expenses exceeded its revenues, resulting in a net loss.