Which of the Following Is True About the Format of Financial

question 49

Multiple Choice

Which of the following is true about the format of financial statements?

• A) A double underline is drawn below the subtotal for total liabilities on the balance sheet.
• B) Dollar signs are omitted if the heading states that amounts are reported in U.S. dollars.
• C) Dividends are reported in parenthesis on the statement of retained earnings.
• D) The heading of each financial statement indicates who, when, and what in that particular order.

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Definitions:

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Total Utility

The overall level of satisfaction or fulfillment a consumer receives from consuming a specific quantity of a good or service.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.