Respuesta :
Answer:
The correct answer is letter "B": The sum of the credits exceeds the sum of the debits in the Income Statement columns on the work sheet.
Explanation:
Net Income, bottom line, or total earnings or profits is a measure of how profitable the company is over a period of time. To find net income, we should take a look at the company's total revenue to subtract any expenses associated with the company's doing business. After deducting taxes from that amount we will have the company's net income.
In the case in the income statement credits exceed debits, the net income of a company is likely to be positive.
The statement that indicates that 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.
Net income simply means the deduction of the expenses that a company incurs from the revenue that the company makes.
Net income is simply used to know how profitable a business is. Therefore, when the sum of the credits exceeds the sum of the debits in the income statement columns on the worksheet, it shows a net income.
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