Question

If the amount of net income for the current period is less than the amount of...

If the amount of net income for the current period is less than the amount of the owner's withdrawals, there will be a(n)

Group of answer choices

decrease in the Cash account.

increase in the owner's Capital account.

Assuming a normal balance, which of the following is correct concerning the income statement columns of the work sheet?

Group of answer choices

The drawing account is shown as a credit.

Assets are shown as debits.

Liabilities are shown as debits.

Expenses are shown as debits.

increase in the Cash account.

decrease in the owner's Capital account.

increase in liabilities on the balance sheet.

Which of the following is correct concerning the work sheet?

Group of answer choices

Capital is shown as a credit in the balance sheet columns.

Liabilities are shown as credits in the income statement columns.

Assets are shown as credits in the adjusted trial balance columns.

Revenues are shown as credits in the balance sheet columns.

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Homework Answers

Answer #1

1. If the amount of net income for the current period is less than the amount of the owner's withdrawals, there will be a(n)

decrease in the Cash account.

Since cash is withdrawn is higher than net income , there will be decrease in cash account.

And decrease in owners capital.

2. Assuming a normal balance, which of the following is correct concerning the income statement columns of the work sheet?

Expenses are shown as debits.

3. Which of the following is correct concerning the work sheet?

Capital is shown as a credit in the balance sheet columns.

Since other optionss are incorrect, Liabilities are not shown on income statement ; Assets are shown as debits side in the adjusted trial balance columns ; Revenues are not shown in the balance sheet columns but in the income statement

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