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25 June, 02:06

Which situation indicates a net loss within the Income Statement section of the worksheet? A. Total debits exceed total credits B. Total credits exceed total debits C. Total debits equal total credits D. None of the above

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  1. 25 June, 05:01
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    A. Total debits exceed total credits

    Explanation:

    The income statement shows the revenue/income generated and expenses incurred by a business over a given period of time.

    Whilst revenue/income are recognized as credit entries, expenses are recognized as debits.

    Where the total expenses is higher than the total sales, the company is said to have made a loss, otherwise, a profit.

    Hence a net loss is when Total debits exceed total credits.
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Home » Business » Which situation indicates a net loss within the Income Statement section of the worksheet? A. Total debits exceed total credits B. Total credits exceed total debits C. Total debits equal total credits D. None of the above
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