Final answer:
Statement B) 'The sum of the credits exceeds the sum of the debits in the Income Statement columns on the worksheet' indicates a company earned a net income, as it demonstrates that revenues were higher than expenses.
Step-by-step explanation:
The statement that indicates a company earned a net income for the period is (B) The sum of the credits exceeds the sum of the debits in the Income Statement columns on the worksheet. In accounting, revenues are recorded as credits, and expenses are recorded as debits.
Therefore, if the credits (revenues) exceed the debits (expenses), it means that the company has generated more revenue than expenses, resulting in a net income.
Option A refers to a situation on the balance sheet and does not directly indicate profitability. Option C suggests greater expenses than revenue, which would indicate a net loss rather than a net income. Option D regarding cash inflows exceeding cash outflows describes positive cash flow, but it does not necessarily correlate with net income since cash flow considers other financial activities beyond income and expenses.
Finally, Option E indicates that the adjusted trial balance is balanced but does not specify whether there is a net income or net loss. Therefore, we can deduce that Option B is directly associated with a net income scenario on an income statement.