Critical Thinking Questions Case 3-1 George Runs a Mid-Size Accounting

question 5

Multiple Choice

Critical Thinking Questions Case 3-1 George runs a mid-size accounting practice and recently upgraded to Excel 2013.He expects sales to grow in the next few months during tax season.After that, he would like to begin upgrading some of the equipment and furniture for the employees in his office.He will start with the Reception area, which has the most visibility.In George's Sales Data worksheet, the result for a formula in cell H14 is ######.What should George do?

• A) increase the width of column H
• B) provide a correct argument or operand
• C) run the calculation again to find the available value
• D) replace the incorrect formula in cell H14 with one that does not divide by zero

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Definitions:

Net Income

The amount of money that remains after all expenses, including taxes and costs of goods sold, have been subtracted from total revenue, indicating the profitability of a company.

Financing Activities

refers to transactions related to raising capital and repaying shareholders, including issuing shares, borrowing, and repaying debt.

Cash Flows

The net amount of cash being transferred into and out of a business, considered vital for its solvency.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.