You Should Use Cell References in Formulas Instead of Constant

question 5

Multiple Choice

You should use cell references in formulas instead of constant values so

• A) you can easily include letters, numbers, and spaces.
• B) it is easier to debug the errors.
• C) you can change the input values without changing the formulas.
• D) you can control the sequence in which Excel performs arithmetic operations.

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Definitions:

Allowances for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect the portion that is estimated not to be collected.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the costs necessary to make the sale.

Bad Debt Expense

A provision for accounts receivable that are considered unlikely to be collected.

Percentage of Credit Sales

An accounting method used to estimate bad debts expense by applying a fixed percentage to the total credit sales of a period.