All of the Following Statements Regarding a Worksheet Are True

question 20

Multiple Choice

All of the following statements regarding a worksheet are true except:

• A)it provides an orderly way to summarize the data for the financial statements.
• B)it is a multicolumn document, which helps move data from the trial balance to the financial statements.
• C)it replaces the adjusting entries in the general journal.
• D)it aids the closing process by listing the adjusted balance of all accounts.

---

Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, and vice versa, often contrasted with normal goods whose demand increases with rising income.

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Income Effect

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

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's overall utility constant.