Question

How is net income on a work sheet calculated?

a) Adding Debit column total to Credit column total
b) Subtracting Credit column total from Debit column total
c) Multiplying Debit and Credit column totals
d) Dividing Credit column total by Debit column total

Answer 1

Net income on a worksheet is calculated by subtracting the Credit column total from the Debit column total.

Step-by-step explanation:

The net income on a worksheet is calculated by subtracting the Credit column total from the Debit column total.

This is because net income is the difference between the total revenue and the total expenses for a specific period.

For example, if the Debit column total is $10,000 and the Credit column total is $8,000, the net income would be $2,000 ($10,000 - $8,000).