Question

Information needed to prepare an income statement’s Expense section is obtained from a work sheet’s Account Title column and
(A) Income Statement Debit column.
(B) Income Statement Credit column.
(C) Balance Sheet Debit column.
(D) Balance Sheet Credit column.

Answer 1

Answer:

Option (A) is correct.

Explanation:

Income statement have an operating section which includes revenue and expenses section.

Revenue section of the operating section includes all the cash inflows and all the values that represents the appreciation of the assets.

On the other hand, expenses section of the operating section includes all types cash outflows and those activities which reduces the value of the assets of the company or increases liability.