All of the Following Statements Are TRUE About Auditing Formulas

question 31

Multiple Choice

All of the following statements are TRUE about auditing formulas EXCEPT:

• A)Tracing formulas draws lines from a formula to cells that supply source data and to formulas that use the result of a formula.
• B)Formula-auditing tools show you which cells are used in a formula and how they are used.
• C)When you select to trace dependents, Excel finds and marks with arrows all the cells that supply values to the active cell.
• D)Both tracing a formula and evaluating a formula are useful in understanding how a worksheet is structured, and they are particularly useful if a complex formula is not producing a correct result.

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Definitions:

Cash-Basis Taxpayer

An individual or entity that reports income and deductions in the year that cash is received or paid, respectively.

Account Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Bad Debt

A financial loss that occurs when a debtor fails to repay a loan or credit extended, considered non-recoverable and potentially eligible for a tax deduction.

Professional Gambler

Professional Gambler is an individual for whom gambling is considered a trade or business, allowing them to deduct losses and expenses related to their gambling activities as business expenses.