Select the Incorrect Statement About Worksheets

question 80

Multiple Choice

Select the incorrect statement about worksheets.

• A)Worksheets facilitate the preparation of financial statements.
• B)The income summary account is used to determine net income for the period.
• C)Two trial balances appear on the worksheet.
• D)The income statement section precedes the retained earnings statement section.

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Definitions:

Return on Invested Capital (ROIC)

A profitability ratio that measures the return that an investment generates for those who have provided capital, either debt or equity.

Net Operating Profit After Taxes (NOPAT)

NOPAT is a measure of a company's operating efficiency, indicating the profit generated from operations after taxes but before financing costs and non-operating gains and losses.

Shareholders' Equity

The owners' equity in a corporation, calculated as the company's total assets minus its total liabilities.

Corporate Tax Liability

The total amount of taxes owed by a corporation based on its taxable income.