Which of the Following Statements Is Incorrect

question 65

Multiple Choice

Which of the following statements is incorrect?

• A) Working papers are invaluable tools of the accountant.
• B) The work sheet shows the effects of adjustments on the account balances.
• C) After the work sheet is completed, the work sheet information is used to prepare the financial statements.
• D) On the work sheet, the accountant sorts the adjusted amounts into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
• E) The work sheet is an optional step in the accounting cycle.

---

Definitions:

Technical Efficiency

The ability of an entity to maximize output for a given set of inputs, using the least possible amount of resources.

Fixed Proportion

A production scenario where inputs are used in rigid, unchanging ratios to produce outputs.

Crew Members

Individuals who work together as part of a team, especially on ships, aircraft, or in film and television productions.

Aircraft

A vehicle designed to navigate through the air.