Which Statement Regarding Headings Is Most Accurate

question 35

Multiple Choice

Which statement regarding headings is most accurate?

• A)Headings provide visual distraction for readers; thus they should be avoided.
• B)Headings appear most often in business letters.
• C)Headings highlight information and improve readability.
• D)Headings should be avoided in all business documents.

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Definitions:

Accrual Basis

This accounting method records income and expenses when they are earned or incurred, regardless of when cash transactions occur.

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, respectively.

External Reporting

The process of providing financial statements and other pertinent information to outside entities, such as investors, creditors, and regulatory agencies.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing how much profit a company makes on sales.