Excess of Debit over Credit is called _______. The income statement o
A. Opening Balance
B. Closing Balance
C. Debit Balance
D. Credit Balance
Right Answer is: C
The income statement of an organisation shows the profits or losses at the end of an accounting period or fiscal year.
• If the debit balance is higher than the credit balance on the income statement, the debit minus the credit represents a loss and is called debit balance.
• If the credit balance is higher than the debit balance on the income statement, the credit minus the debit represents a profit and is called credit balance.