Which of the Following Statements Is Incorrect? 66)

question 23

Multiple Choice

Which of the following statements is incorrect? 66)

• A)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.
• B)Working papers are invaluable tools of the accountant.
• C)After the work sheet is completed, the work sheet information is used to prepare the financial statements.
• D)The work sheet shows the effects of adjustments on the account balances.
• E)The work sheet is an optional step in the accounting cycle.

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Definitions:

Probable Cause

A legal standard that requires a reasonable basis to believe a person has committed a crime, used in issuing warrants and arrests.

Suspect Committed Crime

The allegation or belief that an individual is responsible for committing a criminal act, often the preliminary step in a legal investigation.

Cost-output Elasticity

A measure of the responsiveness of the cost of production to a change in the level of output, indicating how costs change as production scales.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, where fixed costs are spread out over more units of output.