Question

On an income statement, double lines are ruled across both amount columns to indicate that debits equal credits.

Answer 1

On an income statement, double lines are ruled across both amount columns to indicate that debits equal credits. This is represented in a T-account format.

Step-by-step explanation:

The double lines ruled across both amount columns on an income statement indicate that debits equal credits. This is known as the balance sheet equation, which states that assets equal liabilities plus owner's equity. The balance sheet equation is represented in a T-account format, with the T-shape formed by the vertical line down the middle and the horizontal line under the column headings for 'Assets' and 'Liabilities'.